Iran Conflict, Global Economic Turbulence... South Korea's Composite Stock Price Index Plummets 3.38%

The conflict with Iran triggered by military actions from the United States and Israel continues to escalate, causing significant impacts on the global economy and financial markets. Global stock markets are showing instability, and oil prices have surged.

In Seoul, the KOSPI opened sharply down 3.38% at 2,594.79 points, with volatile fluctuations throughout the day. Foreign investors have been continuously selling large amounts of Korean stocks since the beginning of this month, further increasing market uncertainty. This, combined with Iran’s announcement of blocking the Strait of Hormuz, has deepened concerns.

Iran’s newly elected Supreme Leader, Mustafa Khamenei, stated that the blockade of the Strait of Hormuz will be maintained, heightening threats to energy transportation. As a result, oil prices have soared above $100 per barrel, putting pressure on the global economy.

While the rise in international oil prices due to this incident is clear, IBK Investment & Securities analyst Jeong Yong-jae believes its impact on the real economy may be somewhat weaker than in the past. He explained that, based on reduced gasoline consumption and shrinking energy demand, the effect of rising oil prices on the real economy is not as significant as before.

If the situation is not resolved through diplomatic means, tensions are expected to persist for some time. Experts warn that global inflation pressures could further intensify and advise investors to closely monitor market fluctuations and manage risks accordingly.