Kospi Plunges as Oil Prices Soar Past $100 Amid Middle East Tensions

The global oil market is in turmoil as crude prices topped $100 per barrel for the first time since May. The surge was triggered by ongoing geopolitical tensions in the Middle East, with Yemen's Houthi rebels attacking Saudi Arabian oil tankers and US President Donald Trump considering a large-scale attack on Iran.

South Korea's stock market suffered heavily as a result, with the Kospi plummeting over 5% and triggering sell-side circuit breakers. The index opened at 7,000.78 but rapidly accelerated its losses, hitting a low of 6,665.17 before recovering slightly.

Foreign investors net sold $1.4 billion worth of shares, while institutional investors offloaded approximately $826.2 million. Retail investors tried to absorb the selling pressure with net purchases of $2.2 billion, but it was insufficient to stem the index's decline.