South Korean shares fell hard on Monday, and the Kospi stock benchmark dropped 5.6% to 7,060.69 as markets across Asia sold off after the U.S. carried out airstrikes on Iran and Iran retaliated.
The move hit Seoul at the same time it rattled trading in Tokyo, where the Nikkei 225 lost 1.1% to 67,786.86. U.S. stock futures also weakened before the opening bell, with the contract for the S&P 500 down 0.4%, the Dow 0.3% lower and the Nasdaq composite future off 1%.
Oil was the clearest barometer of the shock. Brent crude gained 3.9% to $78.96 per barrel, while U.S. benchmark crude oil added 4% to $74.26 per barrel after several waves of strikes continued into Monday morning and Iran answered by targeting countries across the Middle East.
The jump in crude mattered because the market had just begun to relax. Oil prices had recently slipped back to levels seen before the war with Iran began after an interim agreement and the resumption of shipping through the Strait of Hormuz, but the latest attacks and retaliation snapped that calm back in a matter of hours.
That is why the Kospi’s slide stands out. The index’s drop came as traders were forced to price in a new round of military escalation, fresh pressure on energy supplies and the chance that shipping through the Strait of Hormuz could be disrupted again. For South Korean investors, Monday was not just another weak session. It was a reminder that the market can still move sharply when the conflict turns back toward the Gulf.
What happens next is the question hanging over every trade screen. If the strikes continue and shipping is interrupted again, the pressure on oil and Asian equities could deepen quickly; if the fighting cools, some of Monday’s losses may prove temporary.
