On Tuesday, the Korean Composite Stock Price Index (Kospi) slipped 1. 3%, marking the third consecutive decline amid a global sell‑off triggered by escalating tensions in the Middle East. Oil prices surged to a five‑month high after an Israeli airstrike on a Gaza‑bound convoy prompted fears of supply disruptions, sending the Brent benchmark above $90 a barrel.
Korean conglomerates, particularly the heavy‑industry and automotive sectors, felt the pinch as higher input costs eroded profit margins, while tech stocks, buoyed by domestic demand, offered a modest counterweight. The Bank of Korea signalled that it would monitor the situation closely, and market analysts warned that any further escalation could deepen volatility, urging investors to diversify exposure. Looking ahead, traders will watch for policy signals from the International Energy Agency and the G20, while the upcoming earnings season could provide a reset if global growth prospects improve.