War Ignites International Oil Prices, Financial Sector Pumps the Brakes on ETF Investment

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Amid the backdrop of war with Iran causing a surge in international oil prices, the financial sector has taken measures to curb related index ETF investments. Although KODEX WTI Crude Oil Futures and TIGER Crude Oil Futures Enhanced, which profit from rising oil prices, soared by 53.59% and 60.51% respectively, the industry has implemented a margin ratio increase to 100% to reduce investor risk.

Recently, following US and Israeli attacks on Iran, the daily trading volume of related funds skyrocketed within just a few weeks. From 41 billion KRW at the end of last month to 1.5 trillion KRW this week, trading volume increased dozens of times, drawing significant investor attention. Particularly, after recognizing that the surge in margin trading could amplify risks, management standards for KODEX and TIGER crude oil futures products have been strengthened.

As the conflict shows signs of becoming prolonged, uncertainty in international oil prices is increasing. Although President Trump’s request to deploy military forces in the Strait of Hormuz temporarily halted the rise, Iran’s limited permission for passage through the Strait and the International Energy Agency (IEA)’s announcement of releasing Asian reserves may only serve as temporary stabilization measures.

At the New York Mercantile Exchange, WTI crude oil prices resumed upward momentum, trading at $99.31 per barrel for April delivery. President Trump warned that if Iran does not open an escape route, military strikes could be reconsidered, intensifying tensions.

This trend indicates that oil price volatility influenced by international developments will continue, and financial markets are likely to strengthen policies aimed at protecting investors. Observers believe that escalating tensions in the Middle East could not only impact the oil market but also affect the overall global economy.

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