Key facts
- Seoul stocks and the South Korean won rallied following a U.S.-Iran peace deal.
- The agreement led to the reopening of the Strait of Hormuz.
- The KOSPI index rose sharply, closing above 8,500 for three consecutive days.
- U.S. stocks also saw significant gains, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all advancing.
- Oil prices retreated following the news, easing inflation concerns.
South Korean stocks and currency experienced a significant rally on Monday and Tuesday, driven by the announcement of a preliminary peace agreement between the United States and Iran. This development is expected to lead to the reopening of the Strait of Hormuz, a critical global oil chokepoint.
The benchmark Korea Composite Stock Price Index (KOSPI) surged, closing above 8,500 for the third consecutive day and opening higher on Tuesday. The South Korean won also strengthened, reaching a nearly two-week high against the U.S. dollar. This positive sentiment extended to other markets, with Japanese stocks also seeing gains.
U.S. stocks mirrored the rally, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all posting gains. The Dow Jones Industrial Average reached a record high. Following the news, oil prices retreated, with Brent crude and U.S. WTI both falling, easing concerns over inflation.
U.S. President Donald Trump announced that a preliminary agreement to end the conflict with Iran had been signed and that the Strait of Hormuz would be "completely opened" on Friday. This news boosted investor sentiment globally.