The world's eighth-largest consumer of crude oil is feeling the squeeze on energy supplies as Iran has choked off the vital Strait of Hormuz, with the Middle East war now entering its third week.

The disruption along the key oil route has sent prices soaring and prompted Seoul to impose a fuel price cap for the first time in nearly 30 years.

Ahn Do-geol, an MP from the ruling Democratic party, told reporters after a meeting with relevant government agencies that the coal cap limiting generation to 80 percent would be lifted from Monday.

"Effective today the 80-percent cap will be removed," he said.

The government will also raise the utilisation rate of nuclear reactors by more than 10 percent to help offset the impact of disrupted energy supplies, he said.

"Six reactors are currently undergoing maintenance, but we plan to complete maintenance on two of them by March and the remaining four by mid-May, raising the utilisation rate of nuclear power plants from the current high 60 percent-range to around 80 percent."

Nuclear energy accounted for 31.7 percent of the country's total electricity production in 2024, according to the International Atomic Energy Agency.

The state-run Korea National Oil Corporation will bring in 3.35 million barrels of crude oil it is producing from its overseas projects by June, the MP said.

Seoul said earlier this month it had struck a deal to ship around four million barrels of crude from the United Arab Emirates to bolster supplies.

The government has said it holds oil reserves equivalent to about seven months of consumption.