South Korea's top economic policymaker says the government will timely respond to volatility in the Middle East amid rising tensions between the United States and Iran.

At a meeting with officials on Wednesday, Finance Minister Hong Nam-ki said rapid developments in the region have increased the variability of international oil prices.

The minister said that by closely monitoring the markets, the government will cope with the situation in line with contingency plans.

Amid rising concerns that escalating tensions in the Middle East may affect South Korea's financial markets, Hong said Seoul will operate five teams to promptly respond to changes in the areas of finance and foreign exchange, exports, oil prices, overseas construction and overseas distribution. 

The finance minister said later in a meeting with reporters, however, that it's still too early to assess the impact of the situation.

Following news of Iran's retaliatory attack on bases in Iraq housing U.S. troops, South Korea's benchmark KOSPI index fell more than one percent Wednesday morning.

The Korean won also dipped one percent against the U.S. dollar.