Oil Price Surge Triggers Market Volatility Amid US-Iran Tensions
International oil prices have surged following renewed tensions between the United States and Iran in the Strait of Hormuz. West Texas Intermediate (WTI) rose by 5.2%, breaking back above the $90 mark for the first time since last June.
The increase in oil prices has heightened concerns that inflationary trends will prolong, leading to higher Treasury yields. Long-term bond yields in major countries have risen across the board, with the U.S. 10-year Treasury yield climbing to around 4.8%, its highest level since January 2025.
The KOSPI plummeted by nearly 4% due to rising interest rates and concerns over rate hikes. The Philadelphia Semiconductor Index dropped 2.1% as well, with analysts suggesting that rising interest rates may hamper massive investments in semiconductor-related stocks.