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Seoul Stocks Soar 6% as US-Iran Ceasefire Eases Strait Tensions

South Korean stocks skyrocketed, with the KOSPI index rising nearly 6%, following news of a two-week ceasefire agreement between the United States and Iran. The deal includes the reopening of the strategically vital Strait of Hormuz for oil shipments, easing major geopolitical tensions. Major tech firms like Samsung Electronics and SK hynix led the market rally, while construction companies surged on potential rebuilding contracts in Iran. Conversely, oil refiners and defense shares declined as the ceasefire reduced risk premiums and conflict-related demand.

Key Points: Seoul Shares Jump on US-Iran Ceasefire, Strait of Hormuz Reopening

  • KOSPI jumps 5.94%
  • US-Iran agree to two-week ceasefire
  • Strait of Hormuz reopening
  • Samsung, SK hynix lead tech rally
  • Builders surge on Iran reconstruction hopes
2 min read

Seoul shares sharply up on US-Iran ceasefire

South Korea's KOSPI surges nearly 6% after US and Iran agree to a two-week ceasefire and the reopening of the crucial Strait of Hormuz for oil shipments.

"safe passage... will be possible via coordination with Iran's Armed Forces - Iran's foreign ministry"

Seoul, April 8

South Korean stocks rose sharply higher late on Wednesday morning as the United States and Iran agreed on a two-week ceasefire and reopening the Strait of Hormuz.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 326.12 points, or 5.94 percent, to 5,820.9 as of 11:20 am (local time), reports Yonhap news agency.

The bourse operator activated a buy-side sidecar, temporarily halting program-driven buy orders in KOSPI futures earlier in the session.

U.S. President Donald Trump said in a social media post that the U.S. would suspend attacks on Iran for two weeks if Tehran agrees to the "complete, immediate and safe opening" of the crucial strait.

In response, Iran's foreign ministry released a statement accepting the ceasefire proposal, noting "safe passage" through the crucial waterway "will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations."

Market bellwether Samsung Electronics surged 7.12 percent, and chip giant SK hynix soared 9.5 percent.

Builders traded higher on potential reconstruction opportunities in Iran, with Daewoo Engineering & Construction rising 27.95 percent and Hyundai Engineering & Construction increasing 13.34 percent.

Oil refiners lost ground as global crude prices fell sharply following the ceasefire, with SK Innovation losing 2.96 percent and S-Oil sliding 2 percent.

Defence shares were among losers as well, with Hanwha Aerospace moving down 5.14 percent and Hyundai Rotem surrendering 3.32 percent.

The local currency was trading at 1,478.8 won against the greenback at 11:20 a.m., up 25.4 won from the previous session.

Meanwhile, the government vowed efforts to help South Korean vessels stuck in the Strait of Hormuz to safely pass through the shipping route after the United States and Iran agreed to a two-week ceasefire with the full reopening of the crucial passage for oil.

The Ministry of Trade, Industry and Resources will cooperate with the foreign and oceans ministries to ensure the safe and swift passage of Korean oil tankers tied up at the Hormuz strait, officials said.

- IANS

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Reader Comments

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Priya S
Interesting to see how quickly markets react. A 5.94% jump is huge! Samsung and SK hynix soaring shows how tech is sensitive to global supply chain peace. Makes me wonder how our Sensex would move if there was a similar development in our neighborhood.
R
Rohit P
The Strait of Hormuz is so crucial for oil. A ceasefire is a big relief. Lower crude prices would be a blessing for India's import bill and could help control inflation here. Good for the common man's pocket.
S
Sarah B
While the market surge is positive, it's based on a temporary two-week ceasefire. This feels fragile. Investors should be cautious. The underlying tensions between the US and Iran haven't been resolved, just paused.
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Vikram M
Daewoo and Hyundai Construction up 27% and 13%! They're eyeing reconstruction work already. Indian companies should also be ready to bid for such infrastructure projects if peace holds. There's opportunity in rebuilding.
K
Kavya N
The article mentions South Korean vessels stuck there. Makes you think about the Indian sailors and ships that pass through that region. Our government also needs to have strong contingency plans for our maritime security and citizen safety abroad. Jai Hind.

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