South Korea is set to raise a cap on fuel prices and expand fuel tax breaks to help consumers deal with the fallout from the U.S.-Israeli war on Iran. The operating rate for nuclear power plants will be increased to above 80%, and the seasonal cap on coal power plants is scrapped. This comes as the prolonged Middle East conflict roils global energy markets and rattles Asia's fourth-largest economy. South Korea faces a particular vulnerability due to its heavy reliance on energy imports from the Strait of Hormuz. The government plans to buy back $3.32 billion worth of treasury bonds and redeem additional bonds using the budget surplus.