Middle East Tensions Fuel Korean Refining Stocks Rally

Korean refining stocks surged on April 4th as international oil prices continued to rise due to ongoing tensions in the Middle East. The US and Iran have been involved in clashes, with U.S. Vice President JD Vance stating that the US will not engage in talks with Iran unless it stops attacking merchant ships.

Vance also hinted at potential economic, military, and diplomatic pressure on Iran, but declined to specify which tools would be used. The comments added to the upward momentum of international oil prices, with October-delivery West Texas Intermediate (WTI) futures rising 0.32% to $91.30 a barrel.

Domestic refining-related stocks such as S-Oil and SK Innovation also saw significant gains, with S-Oil shares up 10.01% to 162,700 won and SK Innovation up 4.51% to 136,700 won.