The Korean won opened at 1,519.9 per U.S. dollar in Seoul on Tuesday, hitting its weakest level in 17 years. Fears of global oil supply disruptions grew due to the escalating Middle East conflict. The KOSPI index also opened nearly 3 percent lower.
The Korean won opened at 1,519.9 per U.S. dollar in a Seoul dealing room at Hana Bank on Tuesday, down 4.2 won from the previous session. This marked the lowest level since March 10, 2009, when it fell to 1,561 per dollar during the global financial crisis.
The Middle East conflict began in late February with U.S.-Israeli strikes on Iran and shows no signs of ending. On Monday U.S. time, U.S. President Donald Trump threatened to "completely obliterate" Iran's Kharg Island oil hub, power plants, and oil facilities if no peace deal is reached "shortly." Tehran dismissed the proposals as "unrealistic, illogical and excessive," while a parliamentary security committee approved a draft bill for a toll system on the Strait of Hormuz, according to foreign media reports.
The conflict drove up global oil prices. U.S. West Texas Intermediate crude futures for May delivery rose 3.25 percent to $102.88 per barrel, surpassing $100 for the first time since July 2022. Hana Bank analyst Lee Yoo-jung said, "The standoff between the U.S. and Iran shows no signs of a breakthrough. Concerns that the Middle East crisis could become prolonged are weighing on the market."
The benchmark Korea Composite Stock Price Index opened nearly 3 percent lower amid heavy selling by offshore investors. The won has hovered around the psychologically significant 1,500 mark in recent sessions.
