South Korean equities surged at Wednesday’s open, buoyed by optimistic news that Iran committed to guaranteeing safe passage through the strategic Strait of Hormuz as part of a proposed two-week ceasefire agreement.
The nation’s benchmark Korea Composite Stock Price Index (KOSPI) witnessed a significant jump, climbing 309.92 points, or 5.64 percent, to reach 5,804.7 immediately after the opening bell, reflecting renewed investor confidence.
The positive sentiment followed a social media announcement by US President Donald Trump, who stated Washington would halt offensive actions against Iran for two weeks, contingent on Tehran agreeing to a “complete, immediate and safe opening” of the critically important Strait of Hormuz, a key global shipping lane.
Furthermore, President Trump revealed that the United States had received a 10-point proposal from Iran, describing it as a “workable basis on which to negotiate” future relations and regional stability.
Corroborating the development, Iran’s foreign ministry issued its own statement, confirming acceptance of the proposed two-week ceasefire, signaling a potential de-escalation of regional tensions and a positive outlook for global markets.
