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Seoul Stocks Plunge 3.6% on Trump's "Stone Age" Iran Warning

South Korean stocks plummeted over 3% after U.S. President Donald Trump issued a stark warning about potential military action against Iran. His remarks dashed hopes for a quick end to the conflict and triggered a spike in global oil prices above $100 a barrel. The sell-off hit major market heavyweights including Samsung Electronics and SK hynix, which both fell more than 5%. The heightened geopolitical tensions rattled financial markets, fueling concerns over inflation and a broader economic slowdown.

Key Points: Seoul Shares Drop 3.6% After Trump's Iran Threat

  • KOSPI fell 197.1 points
  • Trump warned of strikes on Iran
  • Oil prices surged above $100
  • Samsung Electronics shares dropped over 5%
  • Local currency weakened against dollar
2 min read

Seoul shares down 3.6 pc on Trump's renewed Iran warning

South Korea's KOSPI fell sharply as Trump's warning on Iran spiked oil prices and rattled markets, hitting major tech and auto shares.

"We are going to hit them extremely hard over the next two to three weeks - Donald Trump"

Seoul, April 2

South Korean stocks dropped over 3 per cent on Thursday morning after US President Donald Trump warned that the United States would strike Iran "extremely hard" over the next few weeks.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 197.1 points, or 3.6 percent, to 5,281.6 as of 11:20 a.m.

The index opened more than 1 percent higher, tracking overnight gains on Wall Street, but turned negative after Trump's remarks dashed hopes for a swift end to the monthlong conflict, reports Yonhap news agency.

In a prime-time address earlier in the day, Trump said, "We are going to hit them extremely hard over the next two to three weeks" and would "bring them back to the Stone Age," warning that energy facilities in Iran could be targeted if a deal is not reached.

The warning pushed up global oil prices, with Brent crude jumping more than 4 percent to above US$100 a barrel.

The conflict, which began in late February following U.S.-Israeli strikes on Iran, has driven up global oil prices amid supply disruptions, rattling financial markets and fueling concerns over inflation and a potential economic slowdown.

In Seoul, most big-cap shares drifted lower. Market bellwether Samsung Electronics fell 5.17 percent, while chip giant SK hynix dropped 5.15 percent.

Top automaker Hyundai Motor sank 4.3 percent, while its affiliate Kia lost 2.06 percent.

Leading battery maker LG Energy Solution went down 0.37 percent, and artificial intelligence investment firm SK Square dived 5.59 percent. Nuclear power plant builder Doosan Enerbility decreased 4.72 percent.

Leading financial firm KB Financial shed 1.35 percent, and major steelmaker POSCO slid 1.01 percent.

Major shipbuilder HD Hyundai Heavy retreated 2.21 percent, and its rival Hanwha Ocean dived 4.49 percent.

Bio shares traded mixed. Bio giant Samsung Biologics climbed 1.34 percent, while Celltrion fell 3.83 percent.

Among gainers, defence giant Hanwha Aerospace jumped 6.3 percent, and Samsung SDI added 2.2 percent.

The local currency was trading at 1,520.2 won against the greenback at 11:20 a.m., down 18.9 won from the previous session.

- IANS

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Reader Comments

S
Sarah B
Interesting to see Hanwha Aerospace gaining 6.3% while everything else falls. Conflict always benefits defence stocks, sadly. Hope diplomacy prevails before this escalates further. The "Stone Age" rhetoric is deeply concerning.
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Rohit P
Oil above $100 again! 😓 This directly hits our pockets in India. Petrol/diesel prices will rise, inflation will spike. Our RBI has a tough job ahead managing this imported inflation. Governments need to think of the common man before making such threats.
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Ananya R
The interconnectedness of the global economy is clear. A conflict in the Middle East causes a sell-off in South Korean tech stocks. Indian IT and pharma stocks with exposure to global markets might see pressure. Stay invested for the long term, don't panic sell.
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Karthik V
While the market reaction is understandable, I respectfully think the article focuses too much on short-term fluctuations. The deeper issue is the humanitarian cost and regional destabilization. Markets will recover, but peace is harder to rebuild.
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Priya S
Samsung Electronics down 5%! Many Indian mutual funds and our own NPS have exposure to these global giants. It's a reminder to diversify properly. Also, hope our government's strategic oil reserves are in good shape to cushion the blow.

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