South Korean stocks and the won surged Monday following the announcement of a peace deal between the U.S. and Iran, which is expected to reopen the Strait of Hormuz and ease global oil supply concerns.
The peace deal between the U.S. and Iran is significant as it is expected to reopen the Strait of Hormuz, a crucial oil shipping lane, potentially easing global supply concerns and impacting energy prices. This development has led to positive market reactions in South Korea, with stocks and the won strengthening.
Seoul stocks experienced a significant surge on Monday, driven by the announcement of a peace deal between the United States and Iran. The agreement is expected to lead to the reopening of the Strait of Hormuz, a critical global oil shipping route.
The South Korean won also strengthened, reaching its highest level in nearly two weeks against the U.S. dollar. The won opened at 1,511.4 won per dollar, up 8.4 won from the previous session, and later traded at 1,504 won per dollar during morning trading, its strongest point since June 1. As of 9:48 a.m., the won was trading at 1,506.8 won per dollar, up 7.9 won from the previous close.
President Donald Trump announced the peace deal on social media, fueling expectations of an end to the Middle East conflict. While Israel's stance remains unclear, global oil prices saw a decline following the news. The won's appreciation was also supported by recent discussions between South Korean Deputy Finance Minister Moon Ji-sung and U.S. counterparts regarding foreign exchange market conditions.