Geopolitical Tensions in Middle East Pressure KOSPI as Oil Prices Surge

The KOSPI index closed modestly higher on Monday, finishing at 6,219.09, but analysts expect a bearish opening on Tuesday. The market is reacting to a deteriorating security situation in the Middle East, which has cast a shadow over global equity sentiment and threatened key technical support levels. Tensions between the U.S. and Iran escalated sharply over the weekend. Reports indicate that Iran has closed the Strait of Hormuz and allegedly fired upon tankers in the waterway, citing a U.S. blockade of Iranian ports. This follows the seizure of an Iranian-flagged cargo ship by U.S. forces in the Gulf of Oman. The geopolitical shock triggered a sharp rally in energy markets, with West Texas Intermediate (WTI) crude for May delivery surging 6.61% to $89.39 per barrel. In Seoul, stock performance was fragmented; Samsung SDI surged 12.43% and POSCO Holdings rose 5.27%, while Hyundai Motor fell 1.31% and Samsung Electronics declined 0.69%. The broader global mood remains cautious. Wall Street ended Monday in the red, with the S&P 500 dropping 0.24% and the Nasdaq falling 0.26%. With the KOSPI hovering just above the 6,200-point support level, the combination of weak U.S. leads and energy volatility suggests a potential breach of this technical floor.