ED Middle East conflict impacts economy
Operation Epic Fury, launched by the United States and Israel to kill Iran's Supreme Leader Ayatollah Ali Khamenei, is seemingly spreading across the Middle East region. As Iran retaliates by attacking strategic facilities in nearby nations, and proxies such as Hezbollah in Lebanon and the Houthis in Yemen join the fight, a dark cloud looms over the Korean economy. As a highly energy-dependent economy, Korea's soaring stock market visibly took a hit Tuesday, falling 7.24 percent. It was the steepest drop in 18 months, hitting retail investors as well as President Lee Jae Myung's efforts to raise the value of the Korean bourse. On Wednesday, it fell more, by 12.1 percent to 5,093.54. The Korean won fell also, quoting on Wednesday at 1,476.2 won per dollar. It may be too premature to say these alarming signs will persist to the extent that Korea will fall short of its target growth rate of 2 percent for the year. But past conflicts that engulfed the Middle East have shown a vicious cycle of higher oil prices leading to higher consumer prices, resulting in a drop in consumption. The impac
Mar 4, 2026