Seoul Stocks Plunge as Middle East Crisis Escalates, Oil Prices Surge

The benchmark Korea Composite Stock Price Index (KOSPI) fell 89.14 points, or 1.69 percent, to 5,188.16 as of 11:20 a.m.

The index opened about 3 percent lower and had been under downward pressure, though some of the earlier losses were erased, reports Yonhap news agency.

US President Donald Trump threatened to "completely obliterate" Iran's Kharg Island, a key oil hub, as well as its power plants and oil wells, if a peace deal with the United States is not reached "shortly."

Tehran, however, dismissed the peace proposals as "unrealistic, illogical and excessive," while a parliamentary security committee approved a draft bill to introduce a toll system for the Strait of Hormuz, according to foreign media reports.

The widening conflict pushed up global oil prices. U.S. West Texas Intermediate (WTI) crude futures for May delivery rose 3.25 percent to US$102.88 per barrel, surpassing the $100 mark on a closing basis for the first time since July 2022.

Most big-cap shares drifted lower. Market bellwether Samsung Electronics slid 2.1 percent, while chip giant SK hynix sank 4.24 percent.

Top automaker Hyundai Motor dropped 2.45 percent, while its sister affiliate Kia tumbled 2.51 percent.

Leading battery maker LG Energy Solution lost 1.83 percent, and artificial intelligence investment firm SK Square dipped 5.98 percent.

Defence giant Hanwha Aerospace declined 4.59 percent, and major financial group KB Financial fell 1.85 percent. Leading shipbuilder HD Hyundai Heavy shed 0.52 percent,

Major bio shares traded mixed. Bio giant Samsung Biologics surged 3.14 percent, while Celltrion remained unchanged.

Among gainers, nuclear power plant builder Doosan Enerbility grew 1.27 percent, and major shipbuilder Hanwha Ocean spiked 5.08 percent.

The local currency was trading at 1,525.2 won against the greenback at 11:20 a.m., down 9.5 won from the previous session.

- IANS