SEOUL, March 13 (AJP) — Asian stock markets opened lower Friday after oil prices surged above $100 a barrel amid escalating tensions around the Strait of Hormuz, raising concerns about prolonged disruptions to global energy supplies.
Investor anxiety intensified after Iran’s Supreme Leader Mojtaba Khamenei vowed to maintain pressure on shipping through the strategic waterway and warned Tehran could open another front in the conflict, stoking fears that the war could drag on and threaten one of the world’s most critical energy routes.
The comments sent oil prices sharply higher. U.S. benchmark West Texas Intermediate crude jumped 9.72 percent to $95.73 a barrel, while global benchmark Brent crude settled at $101.26, its highest close since July 2022.
U.S. equities fell sharply overnight as energy-driven inflation fears rattled markets. The Dow Jones Industrial Average dropped 1.56 percent to its lowest level of the year, while the S&P 500 fell 1.52 percent and the Nasdaq Composite declined 1.68 percent.
Technology shares led the selloff. The Philadelphia Semiconductor Index plunged 3.43 percent as investors priced in potential supply-chain risks linked to Gulf tensions. Major chipmakers also retreated, with Nvidia down 1.53 percent, while Intel and Taiwan Semiconductor Manufacturing Co. fell more than 5 percent and Micron Technology slid over 3 percent.
The weakness spilled into Asian trading, including Seoul, where semiconductor heavyweights led early losses. Samsung Electronics fell 2.55 percent to 183,100 won and SK hynix declined 2.58 percent to 906,000 won.
Most South Korean shares opened lower as the oil shock rattled investor sentiment. The benchmark KOSPI initially dropped about 3 percent before trimming losses. As of 10:56 a.m., the index was down 1.24 percent at 5,513.87, while the tech-heavy KOSDAQ recovered from early losses to rise 0.62 percent to 1,155.51.
Foreign and institutional investors were net sellers, offloading 644.4 billion won ($483 million) and 331.3 billion won worth of shares respectively, while retail investors bought a net 971.1 billion won.
Among major stocks, LG Energy Solution slid 4.17 percent to 368,000 won, Hyundai Motor declined 1.73 percent to 512,000 won and Kia lost 2.93 percent to 162,100 won. Samsung Biologics fell 1.85 percent to 1,595,000 won, SK Square dropped 3.79 percent to 533,000 won and HD Hyundai Heavy Industries slipped 1.99 percent to 592,000 won. Naver edged up 0.45 percent to 223,000 won.
Doosan Enerbility was the lone major gainer, rising 2.13 percent to 105,700 won.
The Korean won weakened toward crisis-era levels, trading at 1,489.40 per dollar.
The Bank of Korea warned that prolonged tensions in the Middle East could push up inflation and said it would maintain a cautious, neutral policy stance for now. While some investors speculate the central bank may eventually tighten policy to contain inflationary pressure, others say heightened geopolitical uncertainty makes a near-term rate hike unlikely.
Elsewhere in Asia, Japan’s Nikkei 225 slipped 0.81 percent to 54,010.97. Hong Kong’s Hang Seng Index fell 0.48 percent to 25,592.49, while China’s Shanghai Composite Index declined 0.33 percent to 4,115.48. Taiwan’s TAIEX also dropped 0.58 percent to 33,386.04.
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