KOSPI Plunges Below 7,000 as Oil Prices Soar

South Korea's KOSPI plummeted 1.76% on Monday, falling below the 7,000 level for the first time in three sessions.

The decline was triggered by rising oil prices and interest rates, which were fueled by geopolitical tensions in the Middle East.

West Texas Intermediate (WTI) crude futures surged to $100.92 per barrel, while Brent crude hit $105.74 per barrel, its highest level since 2004.

The oil price spike translated into inflationary pressure, with the US 10-year Treasury yield breaching 4.95% and the 30-year Treasury yield climbing to 5.360%, its highest in 22 years.

The semiconductor sector was particularly hard hit, with major chip names such as SK Hynix ADR, Micron, and Intel falling between 2.66% and 5.57%.