South Korean stocks opened lower on Thursday, as investors adopted a wait-and-watch approach amid a slowdown in the rally led by AI boom. Investors also took a moment to ponder over the increasing oil prices after the U.S. attacked Iran despite the ongoing peace talks.
The benchmark Korea Composite Stock Price Index, or Kospi, fell 0.8%, or 62.97 points, to open at 8,165.73. The Kosdaq increased 0.2% to open at 1,135.84.
Oil prices rose in early Asian trading after new U.S. strikes near Bandar Abbas and drone interceptions near the Strait of Hormuz raised supply concerns, with U.S. crude futures and Brent crude both gaining more than 2%.
According to a U.S. official, the overnight strikes targeted an Iranian ground control station seen as a threat to U.S. forces and commercial shipping near the Strait of Hormuz, while four Iranian attack drones were also shot down.
The strikes came hours after U.S. President Donald Trump rejected Iranian media reports that Tehran and Oman could jointly oversee shipping in the strategic waterway under a potential peace agreement.