South Korean stocks surged at the opening bell on Tuesday, fueled by declining crude oil prices and optimism surrounding the potential reopening of the Strait of Hormuz. The positive momentum mirrored overnight gains in major US stock indexes.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 161.95 points, or 2.92 percent, reaching 5,711.80 in early trading.
Overnight in the US, the Dow Jones Industrial Average advanced by 0.8 percent, the tech-heavy Nasdaq Composite soared 1.2 percent, and the S&P 500 climbed 1 percent. This marked the strongest performance for the US stock market since the recent joint airstrikes by the United States and Israel against Iran.
The positive market sentiment was supported by a retreat in global oil prices, coinciding with US President Donald Trump’s request for international assistance, including from South Korea, in reopening the Strait of Hormuz, a crucial oil export route in the Middle East.
Further bolstering expectations, International Energy Agency (IEA) Executive Director Fatih Birol indicated that IEA member countries could tap into their emergency oil stockpiles if needed. The IEA had previously announced plans to release a combined 40 million barrels from its member countries’ reserves last week.
