South Korean Markets Rebound as Trump Signals Potential End to Iran Conflict

Seoul’s Kospi index opened more than 5% higher on Tuesday, leading a broader regional rebound, following signals from U.S. President Donald Trump that the conflict with Iran could be nearing a resolution. The gains came as oil prices experienced a significant drop and Wall Street advanced.

Oil Price Decline Fuels Market Optimism

International Brent crude oil fell by 10% to $89.90 per barrel as of 9:10 p.m. ET on Monday, whereas U.S. Crude oil decreased by over 9% to $86.05 per barrel. This decline occurred after oil prices had surged past $100 earlier in the day. Trump indicated he was considering seizing control of the Strait of Hormuz, a critical chokepoint for global crude oil supply, contributing to the market shift.

According to Rapidan Energy Group President Bob McNally, the current situation represents the largest interruption to world oil supply, with approximately 20% affected CNBC. The disruption is comparable to the Suez Crisis of 1956, which impacted roughly 10% of global oil supply.

Regional Stock Market Gains

The positive momentum extended to other Asian stock indexes:

• Australia’s S&P/ASX 200 rose 1.35% in early trade.
• Japan’s Nikkei 225 jumped 1.66%, and the Topix gained 1.3%.
• Hong Kong’s Hang Seng index rose 1.56%, while the CSI 300 gained 0.9%.

Travel Stocks Witness Rebound

Travel-related stocks also benefited from the improved outlook. Hong Kong-listed shares of Air China rose nearly 3%, while China Eastern Airlines and China Southern Airlines added 2.9% and 2.85%, respectively. Singapore Airlines rose 1.54%.

U.S. Market Performance

U.S. Stocks also advanced on Monday. The S&P 500 rose 0.83% to close at 6,795.99, the Dow Jones Industrial Average added 239.25 points (0.5%) to end at 47,740.80, and the Nasdaq Composite jumped 1.38% to settle at 22,695.95. The Dow’s gains followed its largest weekly slide in nearly a year.

Trump’s Conflicting Statements on Iran War

President Trump has offered conflicting assessments of the Iran war strategy. While suggesting the conflict was “very complete,” he also indicated to House Republicans that “we haven’t won enough” CNN.

South Korea and Potential Tariffs

Separately, President Trump has threatened to increase tariffs on South Korean goods due to the South Korean National Assembly’s delay in approving a trade framework announced last year AP News. This action could potentially impact South Korea’s economy and currency.