U.S.-Iran Tensions Escalate, Oil Prices Surge; Tech Sell-Off Drags South Korean Stocks Down Nearly 9%

(CNA, Hong Kong, 13th – compiled international reports) Tensions between the United States and Iran have reignited, threatening an already fragile ceasefire, sending international oil prices soaring over 4% today. Meanwhile, a new wave of selling pressure on technology stocks dragged South Korea's stock market to a near 9% plunge at closing. The Korean market triggered its 7th circuit breaker of the year today, temporarily halting trading.

According to AFP, as negotiators work to secure a peace deal to keep the strategic Strait of Hormuz open, renewed conflict between the U.S. and Iran has heightened tensions in the Middle East. Oil prices surged on the news, as markets fear war could fuel inflation and force central banks to raise interest rates.

However, IG market analyst Fabien Yip noted that oil prices are unlikely to return to the highs seen on February 28, when the U.S. and Israel jointly attacked Iran.

She stated: 'In the short term, risk premiums should continue to support oil prices, but a repeat of the previous surge is unlikely, as demand recovery remains slow, and the release of detained tankers along with OPEC+ expanding production quotas will continue to add supply to an already oversupplied market outlook.'

South Korea's Kospi index was dragged down today by sharp declines in heavyweight stocks SK Hynix and Samsung Electronics, closing nearly 9% lower.

The market briefly triggered its 7th circuit breaker of the year, halting trading for 20 minutes. SK Hynix has lost nearly 40% of its market value since hitting a record high last month.

Japan's market also fell nearly 2% today, dragged down by losses in major tech firms Advantest and Tokyo Electron.

Among other Asian markets, Shanghai, Singapore, Wellington, and Manila closed lower; Hong Kong, Taipei, and Jakarta ended higher. (Compiled by: Liu Shuqin) 1150713

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