Korean stocks closed lower on Thursday amid escalating tensions in the Strait of Hormuz, which caused volatility in global oil prices. The KOSPI index fell 0.48 percent to 5,583.25, while the won weakened sharply to 1,481.2 against the U.S. dollar, down 14.7 won. Despite the International Energy Agency's plan to release oil reserves, investors remained cautious over fears of a prolonged conflict.
On Thursday, March 12, 2026, Korean stocks closed lower amid ongoing tensions in the Middle East, particularly in the Strait of Hormuz, which led to extreme volatility in global oil prices. The Korea Composite Stock Price Index (KOSPI) declined 26.7 points, or 0.48 percent, to end at 5,583.25. This drop came as Iran effectively halted cargo traffic through the strait, firing on commercial ships and targeting Dubai International Airport, escalating the conflict following U.S.-Israeli attacks on Iran.
U.S. President Donald Trump claimed the war was nearing an end, but reports of attacks on commercial vessels persisted, keeping tensions high. The Korean won, which had risen over the previous two sessions rebounding from a 17-year low after Trump's hints of stabilization, weakened again to 1,481.2 per dollar, down 14.7 won from the prior session. This marked its first decline in three days and reflected high volatility in foreign exchange and stock markets since last week.
The International Energy Agency (IEA) announced plans to release 400 million barrels from its oil stockpiles to mitigate supply disruptions, while the United States intends to release 172 million barrels from its Strategic Petroleum Reserve starting next week. Despite these measures, surging oil prices increased Korea's demand for dollars to pay for crude imports, as the country heavily relies on energy imports, putting downward pressure on the won. The stock market's slide was exacerbated by heavy foreign selling amid concerns over a prolonged war, with investors staying on the sidelines.
