Seoul stocks experienced a significant decline on Thursday following renewed threats by US President Donald Trump against Iran, which sparked investor concerns and drove global oil prices upward. The Korean won also weakened against the US dollar.
The Korea Composite Stock Price Index (KOSPI) plummeted by 244.65 points, a 4.47 percent decrease, closing at 5,234.05.
Initially, the index opened more than 1 percent higher, mirroring overnight gains on Wall Street. This initial optimism stemmed from hopes of a resolution to the ongoing conflict in the Middle East, which began in late February after US-Israeli strikes on Iran.
However, the market sentiment shifted negatively, facing strong downward pressure after President Trump announced in a prime-time address that the United States would impose severe measures on Iran “extremely hard over the next two to three weeks,” aiming to “bring them back to the Stone Age.” He also cautioned that Iranian energy infrastructure could be targeted if a nuclear deal remains elusive.
This renewed uncertainty propelled global oil prices upward, with Brent crude surging more than 4 percent, exceeding $100 per barrel.
The Korea Exchange, the primary stock market operator in South Korea, triggered a sell-side sidecar around 2:46 p.m., temporarily suspending program trading sell orders in KOSPI futures for a five-minute period.
