Seoul Stocks Plunge as Failed Iran Talks Threaten Oil Supply Chain

The benchmark Korea Composite Stock Price Index (KOSPI) fell 68.15 points, or 1.16 percent, to 5,790.72 as of 11:20 am (local time), reports Yonhap news agency.

President Trump announced a blockade of Iranian ports following marathon talks between Washington and Tehran in Islamabad over the weekend that ended without progress. The U.S. military said the measure would take effect at 10 a.m. Monday (U.S. time).

"The breakdown in the talks and the possible U.S. blockade of the Strait of Hormuz could fuel uncertainties, intensifying concerns over global supply chains," said Seo Sang-young, an analyst at Mirae Asset Securities.

In Seoul, market bellwether Samsung Electronics fell 2.31 percent and Hanmi Semiconductor, a major chip equipment manufacturer, dipped 2.8 percent.

Shipbuilders also traded lower, with HD Hyundai Heavy Industries declining 2.11 percent and Hanwha Ocean dropping 2.19 percent.

Bio giant Samsung Biologics decreased 1.27 percent, and Celltrion retreated 2.2 percent.

However, food giant CJ Cheiljedang added 0.84 percent, and Samyang Foods, best known for the global hit Buldak ramyeon series, jumped 4.85 percent.

The South Korean won weakened markedly against the U.S. dollar. The won opened at 1,495.4 per dollar, down 12.9 won from the previous session's close.

The currency has shown heightened volatility in recent sessions, in line with developments in the Middle East conflict that began in late February, as rising oil prices have fuelled concerns over inflation and a potential economic slowdown.

Higher oil prices have pressured the won by increasing demand for dollars for crude imports as South Korea relies heavily on imports for energy.

The dollar index, which measures the value of the U.S. dollar against a basket of six major currencies, rose 0.4 percent to 99.04.

- IANS