Markets see volatility after U.S. strikes on Iran, KOSPI holds above 3,000

Meanwhile, global financial markets are bracing for the aftermath of Washington's attack on Tehran, and South Korea is no exception.

In fact, South Korean stocks ended slightly lower, snapping a five-day rally, while the Korean won reached a one-month low against the dollar.

Park Jun-han has the details.

Stocks and the South Korean currency showed volatility across the board on Monday as risk aversion increased in the aftermath of the U.S. airstrikes on three Iranian nuclear facilities.

South Korea's benchmark KOSPI closed at 3-thousand-14-point-47 points on Monday, point-24% lower than Friday's market-end.

Although the benchmark index secured the 3-thousand mark at the close, the market showed volatility as it opened at around 2-thousand-9-hundred-90-points.

The index then fell to the 2-thousand-9-hundred-70s early in the day, but then bounced back to above 3-thousand.

The won's exchange rate against the U.S. dollar opened at 1-thousand-3-hundred-75 won on the Seoul Foreign Exchange Market, up 9-point-4 won from the previous session, and widened further to end above 1-thousand-3-hundred-84 won — up 18-point-7 won from last Friday's close at 3:30 PM.

"The volatility seems to be funneled into the dollar, as it is the world's reserve currency, causing the exchange rate to rise despite the U.S. being a party to the conflict."

If Iran decides to fully block the Strait of Hormuz, it would disrupt global energy supply chains and send shockwaves through oil markets, hitting energy-dependent economies like South Korea especially hard.

According to the Korea Trade-Investment Promotion Agency, 99 percent of Middle Eastern crude imported by Korea travels through the strait.

Meanwhile, with uncertainty mounting, the government held an emergency inter-agency meeting on Monday.

It said it will crack down on unfair oil price hikes and keep domestic fuel prices in check.

The authorities also plan to closely monitor financial markets and act quickly if volatility spikes.

Park Jun-han, Arirang News