South Korean Stocks Hit Record High on Middle East Optimism
South Korean stocks opened at a new high on Tuesday, crossing the 8,000-point threshold as investors hoped for a U.S.-Iran agreement to reopen the Strait of Hormuz.The benchmark Korea Composite Stock Price Index, or Kospi, rose 2.8%, or 223.2 points, to open at 8,070.91. The Kosdaq increased 2.4%, or 28.15 points, to open at 1,189.28.Optimism over a possible end to the conflict in the Middle East led oil prices to decline sharply as well. Brent crude plunged 7% to $96, and U.S. West Texas Intermediate futures shed 6.5% to $90.Despite the ongoing ceasefire and negotiations to permanently end the war, the U.S. targeted and attacked Iranian missile launch sites and boats around the Strait of Hormuz in what its military called "self-defence strikes."The strikes took place after Iranian foreign ministry spokesman Esmail Baqai said that although talks progressed with the U.S., but a deal to end the conflict "is not imminent".The strikes were made on an area near Iran's southern port city of Bandar Abbas, home of a naval base that sits on the Strait of Hormuz.