Key facts
- Seoul stocks rose for a fourth consecutive day, closing above 8,700 points.
- The gains were driven by optimism over a U.S.-Iran deal to end conflict and reopen the Strait of Hormuz.
- The Korea Composite Stock Price Index (KOSPI) increased by 2.11 percent.
- U.S. stocks rallied significantly overnight following President Donald Trump's announcement of a preliminary Iran deal.
- Oil prices fell sharply as concerns over supply disruptions eased.
Seoul stocks surged on Tuesday, extending a four-day winning streak as optimism grew over a preliminary agreement between the U.S. and Iran to end their conflict and reopen the vital Strait of Hormuz.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 2.11 percent to close at 8,726.6, adding 180.62 points. This rise followed a significant rally in U.S. markets overnight.
U.S. President Donald Trump announced that a preliminary deal had been signed and that the Strait of Hormuz would be fully reopened by Friday. In response, the S&P 500 rose 1.7 percent, the Nasdaq 100 gained 3.1 percent, and the Dow Jones Industrial Average reached a new record high.
The easing of geopolitical tensions also led to a retreat in oil prices. Brent crude fell 4.76 percent to $83.17 per barrel, and U.S. WTI dropped 4.87 percent to $80.75 per barrel, alleviating concerns about potential inflation spikes.