KOSPI stock fell 5.6% to 7,060.69 in Seoul on Monday after U.S. airstrikes and Iran retaliation pushed oil higher and hit Asian markets. Investors in the Kospi had to price a sharper geopolitical shock while Tokyo also weakened and U.S. stock futures slipped before the U.S. open.
Brent crude at $78.96
Brent crude gained 3.9% to $78.96 per barrel, while U.S. benchmark crude oil added 4% to $74.26 per barrel. Prices for both types of crude oil had recently slipped back to prewar levels before the new strikes, so Monday’s jump reversed that move in a single session.
Nikkei 225 loses 1.1%
The Nikkei 225 lost 1.1% to 67,786.86 as the regional selloff broadened beyond South Korea. U.S. stock futures also weakened, with the S&P 500 contract down 0.4%, the Dow 0.3% lower and the Nasdaq composite future off 1%, a sign that the shock was not limited to one market or one asset class.
Strait of Hormuz supply risk
Oil had only recently eased after an interim agreement on ending the conflict and ships resumed moving through the Strait of Hormuz. Over the weekend, an Iranian attack on a container ship in the Strait of Hormuz set it ablaze and left a crew member missing, then Monday’s strikes and retaliation across the Middle East pulled crude back up again.
For investors in the Kospi, the immediate question is whether Monday’s 5.6% slide becomes a one-day break or the start of a wider repricing tied to shipping risk, crude prices and the next move in the conflict.
