Oil Prices Rise Amid Resurgent Middle East Tensions... KOSPI Plummets 3.99%

[Anchor]

As the conflict between the United States and Iran intensifies, international oil prices have surged in tandem. Amid concerns that high oil prices, coupled with already rising interest rates, will stimulate inflation and further fuel rate hikes, the KOSPI plummeted by nearly 4%.

Here is a report by Reporter Min Gyeongho.

[Reporter]

As the United States and Iran resumed their standoff over the Strait of Hormuz, international oil prices reacted immediately.

West Texas Intermediate (WTI) rose 5.2%, breaking back above $90 for the first time since June.

The surge in international oil prices heightened concerns that inflationary pressure would be prolonged, leading to an increase in government bond yields.

U.S. 10-year Treasury yields rose to around 4.8%, hitting their highest level since January 2025, while long-term bond yields in major economies rose across the board.

Following the rise in Treasury yields and growing expectations of a benchmark interest rate hike, the three major U.S. stock indices declined together overnight.

In particular, as concerns grew that rising interest rates might hinder investments in semiconductor-related stocks—where large-scale investment serves as a growth driver—the Philadelphia Semiconductor Index also fell by 2.1%.

The KOSPI, where Samsung Electronics and SK Hynix account for nearly half of the total market capitalization, took a direct hit.

It closed down 3.99% at 6,562, marking a decline for the first time in three trading sessions since August 28, while Samsung Electronics and SK Hynix both recorded drops in the 4% range.

Some analysts point out that Federal Reserve Chair Kevin Warsh's hints at monetary tightening during his Jackson Hole speech on August 28 raised rate-hike expectations, which is why the market reacted even more sensitively to the situation in the Strait of Hormuz.

[Interview / Kim Dong-won, Head of Research Division at KB Securities : As uncertainties in the Middle East expand and high international oil prices persist, concerns over interest rate hikes are bound to remain.]

Experts analyze that the short-term direction of the stock market will be determined by the U.S. interest rate decision on the 16th and the U.S. Consumer Price Index results on the 11th, which will have a major impact on it.

(Photo courtesy of Choi Ho-jun | Video Editing: Kim Ho-jin)
※ Please note: This article was translated by AI and may contain errors.