Seoul shares close lower on extended Middle East tension; won sharply down
The KOSPI index is displayed at the dealing room of Woori Bank headquarters in Seoul, Thursday. Yonhap
Korean stocks closed lower Thursday amid escalating tensions in the Strait of Hormuz, which triggered extreme volatility in global oil prices. The local currency fell sharply against the greenback.
The Korea Composite Stock Price Index (KOSPI) moved down 26.7 points, or 0.48 percent, to close at 5,583.25.
Tensions continued to persist around the critical waterway south of Iran despite U.S. President Donald Trump's claim that the war is nearing an end, with attacks on commercial ships reported.
The International Energy Agency announced a plan to release oil reserves to address fluctuations in global oil prices, but investors stayed on the sidelines amid concerns the conflict could linger for a longer period.
The Korean won was trading at 1,481.2 won against the U.S. dollar, down 14.7 won from the previous session, as of 3:30 p.m.