War in Middle East echoes through Seoul

By Han Jun-gu and Yoo Na-hyun Posted : March 5, 2026, 17:06 Updated : March 5, 2026, 17:37
This composite image shows Israeli Ambassador Rafael Harpaz (left) as he speaks during a press conference at the HJ Business Center in Jongno-gu, Seoul, on March 6, alongside Iranian Ambassador Saeed Koozechi (right) as he addresses the media at the Embassy of the Islamic Republic of Iran in Yongsan-gu on the same day regarding military operations involving Israel and the United States. Graphics by AJP Song Ji-yoon

SEOUL, March 05 (AJP) - The war unfolding across the Middle East may be thousands of miles away from Seoul, but its shockwaves are being felt sharply in the capital of South Korea.

Rockets are flying across borders in the region with no sign of the conflict abating. On the far eastern edge of the globe, the repercussions are unfolding in diplomatic halls, financial markets and even gas stations across the South Korean capital.
 
A Tale of Two Embassies
 
Saeid Koozechi, ambassador of the Islamic Republic of Iran to South Korea, delivers a statement on Israeli and U.S. military strikes against Iran at the Embassy of the Islamic Republic of Iran in Yongsan, Seoul, March 5. AJP Yoo Na-hyun

At 10 a.m. Thursday, Iran’s ambassador stepped to the microphone inside the Iranian Embassy in Itaewon.

“The attack is a clear violation of international law,” the ambassador said, unleashing a sharp denunciation of Israel and the United States.

The briefing ran long. What had been scheduled as a short press conference stretched well past noon as journalists pressed for answers on Iran’s next move and the risk of a wider war.

Yet even before the Iranian envoy finished speaking, another diplomatic confrontation was already unfolding across the city.
 
Rafael Harpaz, Israel’s ambassador to South Korea, enters a press conference at the HJ Business Center in central Seoul on March 6 to brief reporters on Israel’s military operation “Roaring Lion” and the government’s position. AJP Han Jun-gu

At 11 a.m., Israel’s ambassador faced reporters at the HJ Business Center near Gwanghwamun.

“We could no longer tolerate Iran’s nuclear threat,” he said, defending the strikes and accusing Tehran of destabilizing the region.

Two ambassadors. Two narratives. On the same day, in the same city, each laying out opposing justifications for a war that shows little sign of diplomatic resolution.
Markets Reeling, Government Scrambling
 
이 합성사진은 (위쪽) 코스피가 미국과 이란 간 전쟁 발발 여파로 역대 최대 폭으로 폭락해 5,100선마저 내준 2026년 3월 4일 서울 중구 하나은행 본점 딜링룸에 코스피가 표시되어있는 모습, (아래쪽)최근 연이틀 폭락한 코스피가 급반등해 단숨에 5,580대를 회복한 5일 서울 중구 하나은행 딜링룸에 코스피와 환율, 삼성전자, SK하이닉스의 주가가 표시되어있는 모습이다. edited by AJP Song Ji-yoon

While diplomats traded accusations, South Korean authorities were scrambling to contain financial turmoil triggered by the Middle East conflict.

Emergency meetings stretched across government agencies after Seoul’s stock market suffered one of its steepest sell-offs in decades.
 
President Lee Jae Myung speaks during an extraordinary Cabinet meeting at the Blue House in Seoul on March 5 to discuss emergency response measures following military strikes in the Middle East and to order the swift execution of a 100 trillion won market stabilization program. YONHAP

President Lee Jae Myung ordered the immediate deployment of a 100 trillion won ($68 billion) market stabilization program, while instructing regulators to crack down on oil hoarding and price manipulation.

The measures helped trigger a dramatic rebound.

On Thursday, the KOSPI surged 9.63 percent, recovering much of the previous session’s historic drop of more than 12 percent. The tech-heavy KOSDAQ jumped about 14 percent, reversing an equally steep fall.

The Korean won also stabilized slightly, with the dollar trading around 1,466 won after briefly approaching 1,480 the previous day.
Oil Shock Reaches the Streets
 
Fuel prices are displayed at a gas station in Seoul on March 5. 2026. AJP Yoo Na-hyun.

The ripple effects were not confined to financial markets.

As global oil prices surged — with Brent crude rising above $81 a barrel — gas stations across Seoul began raising prices through the afternoon.

South Korea imports more than 70 percent of its crude oil from the Middle East, making the country particularly vulnerable to disruptions in the Strait of Hormuz, the strategic shipping lane through which much of that oil passes.

The spike in energy prices, combined with a weaker currency, threatens to push up import costs across the economy.

 
A War 3,700 Miles Away — Felt at Home

Analysts warn that if the conflict expands or disrupts energy flows through the Gulf, the economic impact could deepen quickly for Asia’s fourth-largest economy.

For many Seoul residents, the geopolitical crisis came into focus not through diplomatic statements or market charts, but through everyday costs — the price displayed on a gas pump or the volatility flashing on a smartphone trading app.

At the very moment the two ambassadors traded sharp accusations in Gwanghwamun and Itaewon, motorists across the city were watching fuel prices climb.

A war more than 3,700 miles away had suddenly become impossible to ignore.

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