SEOUL, March 3 (AJP) — South Korean markets, returning from a long weekend, opened sharply lower Tuesday as investors moved to price in rapidly escalating tensions in the Middle East following U.S.-Israeli strikes on Iran and the growing risk of prolonged disruption to energy supplies.
The benchmark KOSPI fell 2.60 percent at the open to 6,081.92, while the tech-heavy KOSDAQ dropped 2.57 percent to 1,162.17.
The disruption of the Strait of Hormuz — which handles roughly 20 percent of global seaborne oil shipments — has reignited supply concerns across global energy markets. For Asia’s import-dependent economies, the chokepoint represents a critical vulnerability.
Although OPEC+ — including Saudi Arabia, the United Arab Emirates and Russia — agreed to increase output by 206,000 barrels per day starting next month, the planned hike amounts to just 0.2 percent of the roughly 100 million barrels produced globally each day, limiting its capacity to offset potential supply losses should the conflict widen.
Oil prices remained volatile. Brent crude for May delivery traded at $77.74 per barrel as of 12:55 a.m. BST, little changed from the previous session. U.S. West Texas Intermediate for April delivery stood at $70.82 per barrel as of 6:56 p.m. EST, down $0.40, or 0.56 percent.
Still, traders are increasingly pricing in geopolitical risk premiums. Escalating uncertainty surrounding Iran has fueled speculation that crude could surge above $100 per barrel — a level that would amplify inflationary pressure and weigh on global growth.
Seoul sought to calm markets. The government said Sunday that South Korea holds sufficient crude oil and LNG stockpiles to last 208 days, pledging close monitoring of financial and energy markets.
U.S. President Donald Trump said the war could last “four weeks,” as Iran launched retaliatory strikes across the region in what analysts describe as the most serious security challenge in the Persian Gulf in decades.
The Korean won weakened sharply, falling about 2.5 percent from its Feb. 26 high, reflecting a broader risk-off shift across emerging Asian currencies.
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