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U.S.-Iran Preliminary Peace Deal Sends Seoul Markets Higher

Reopening the Strait of Hormuz would cut shipping costs, lower oil risk premia, draw foreign capital to Seoul.

Overview

  • President Donald Trump announced the preliminary agreement on social media and Tehran confirmed the deal, a development reported on Sunday that signaled a potential end to months of conflict.
  • Seoul stocks jumped sharply on Monday with the KOSPI closing up about 5.2 percent to 8,545.98 as foreign investors turned net buyers after a 25-day selling streak.
  • The South Korean won strengthened to roughly 1,511 won per dollar on Monday as foreigners bought a net 982.4 billion won of local shares and authorities held recent FX talks with U.S. counterparts.
  • Logistics, airlines and major exporters led gains — with HMM, Korean Air, Samsung Electronics and SK hynix among winners — while the Korea Exchange briefly activated a 'sidecar' trading halt early in the session.
  • Key implementation details remain unresolved: a formal signing is scheduled in Switzerland on Friday, the timing and verification of lifting the naval blockade and Hormuz reopening are unclear, and regional reactions could yet change market sentiment.