Seoul fuel prices top 2,000 won as oil rises on Iran tensions despite ceasefire hopes

Fuel prices for gasoline, diesel and premium gasoline are displayed at a gas station in Seoul, Tuesday. Average gasoline prices in the capital surpassed 2,000 won per liter, as the prolonged Middle East conflict added to the burden of high fuel costs. Yonhap

Domestic fuel prices continued their upward trajectory Tuesday, with average gasoline prices in Seoul surpassing 2,000 won ($1.33) per liter, even as hopes grew for a ceasefire between the United States and Iran.

According to Opinet, a fuel price information system operated by the state-run Korea National Oil Corp., the nationwide average gasoline price reached 1,964.7 won per liter, up 6.4 won from a day earlier. Diesel prices rose by the same amount to 1,955.6 won.

In Seoul, the increase was steeper. Gasoline averaged 2,000.3 won per liter, up 9.9 won from a day earlier, while diesel climbed 11.6 won to 1,979.6 won.

This marks the first time in three years and eight months that Seoul’s average gasoline price has returned to the 2,000-won range. The last time it happened was on July 25, 2022, when it hit 2,005 won amid the Russia-Ukraine war and prolonged high global oil prices.

On Jeju Island, where gasoline prices are the highest in the country, the average had already exceeded 2,000 won per liter on Saturday and continued to rise. On Tuesday, it increased 4.4 won to reach 2,019.2 won.

Despite growing hopes for an end to hostilities between Washington and Tehran, global oil prices posted modest gains, driven by persistent geopolitical uncertainty.

Brent crude for June delivery settled at $109.77 per barrel on Monday (local time), up 0.7 percent from the previous session, while U.S. West Texas Intermediate for May delivery rose 0.8 percent to $112.41 per barrel.

Market jitters have been fueled by concerns that the United States could carry out additional strikes on Iran if a deal is not reached by the deadline set by U.S. President Donald Trump.

Trump warned that he would destroy all of Iran’s bridges and power plants unless his demands, including the reopening of the Strait of Hormuz, are met by 8 p.m. Eastern time Tuesday (9 a.m. Wednesday in Korea).

Typically, changes in global oil prices take about two to three weeks to be reflected in retail fuel prices at domestic gas stations.

With international oil prices climbing and domestic fuel costs repeatedly hitting fresh highs, the nationwide average gasoline price is widely expected to surpass the 2,000 won per liter mark in the near term.

The KOSPI and Kosdaq indexes are displayed on electronic boards at the dealing room of Hana Bank’s headquarters in Seoul, Tuesday. The KOSPI closed at 5,494.78, up 44.45 points, or 0.82 percent, from the previous session, while the Kosdaq fell 10.64 points, or 1.02 percent, to 1,036.73. Yonhap

Meanwhile, the benchmark KOSPI jumped 101.86 points, or 1.87 percent, to open at 5,552.19 and extended gains to an intraday high of 5,594.90 in early trading, supported by improved investor sentiment after Samsung Electronics posted stronger-than-expected first-quarter earnings. It later gave up part of its gains, ending the session up 44.45 points, or 0.82 percent, at 5,494.78.

The tech giant reported preliminary first-quarter sales of 133 trillion won, up 68.06 percent year-on-year, while operating profit surged 755.01 percent to 57.2 trillion won.

The figure not only far exceeded the market consensus of 38 trillion won but also surpassed the company’s full-year operating profit of 43.6 trillion won recorded last year.

Following the earnings surprise, its shares rose 1.76 percent to close at 196,500 won.

The secondary bourse Kosdaq fell 10.64 points, or 1.02 percent, to finish at 1,036.73.

In the Seoul foreign exchange market, the won closed at 1,504.2 per dollar in onshore trading, up 2.1 won from the previous session.