KOSPI rises 145 points on US-Iran Hormuz deal optimism
Synopsis
A US-Iran deal to reopen the Strait of Hormuz sent Seoul's KOSPI up 145 points in a single session, with Daewoo Engineering soaring 22.71 percent on Middle East opportunity bets and LIG D&A jumping 18.82 percent on a Rheinmetall tie-up. Oil's near-5 percent plunge added fuel to the fire — but the rally is only as durable as the deal itself.
Key Takeaways
KOSPI rose 145.52 points (1.7%) to 8,691.5 as of 11:20 am on 16 June .
US President Donald Trump announced a preliminary US-Iran agreement to reopen the Strait of Hormuz by Friday.
Brent crude fell 4.76% to $83.17/barrel ; WTI dropped 4.87% to $80.75/barrel .
Daewoo Engineering & Construction surged 22.71% ; LIG D&A jumped 18.82% on a Rheinmetall partnership.
Samsung Electronics gained 0.89% ; SK Hynix rose 2.91% .
South Korea's M2 money supply reached 4,153.9 trillion won in April, up 0.6% month-on-month per Bank of Korea data.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) climbed 145.52 points, or 1.7 percent, to 8,691.5 as of 11:20 am local time on Tuesday, 16 June, as investor sentiment surged following a preliminary US-Iran agreement to reopen the Strait of Hormuz. The rally reflected a broad risk-on mood across Asian markets after overnight gains on Wall Street.
What Drove the Rally
US President Donald Trump announced overnight that a preliminary agreement to end the conflict with Iran had been signed, with the Strait of Hormuz set to be 'completely opened' by Friday. The news triggered a sharp global market rally. The S&P 500 rose 1.7 percent, the tech-heavy Nasdaq 100 gained 3.1 percent, and the Dow Jones Industrial Average reached a record high.
Oil Prices Retreat, Inflation Fears Ease
Oil markets responded swiftly to the geopolitical thaw. Brent crude fell 4.76 percent to $83.17 per barrel, while US WTI crude dropped 4.87 percent to $80.75 per barrel. The pullback in energy prices eased concerns over inflation, further boosting equity sentiment globally and in Seoul.
Key Movers on the KOSPI
Market heavyweight Samsung Electronics edged up 0.89 percent, while memory chip rival SK Hynix rose 2.91 percent. Defence firm LIG D&A surged 18.82 percent after announcing a partnership with German defence company Rheinmetall to cooperate on air defence systems. Daewoo Engineering & Construction soared 22.71 percent on expectations of fresh business opportunities in the Middle East as geopolitical tensions eased.
Currency and Money Supply
The Korean won was quoted at 1,513.9 won against the US dollar, down 2.8 won from the previous session. Separately, data from the Bank of Korea (BOK) showed the country's M2 money supply rose to an average of 4,153.9 trillion won ($2.74 trillion) in April, up 0.6 percent or 25.3 trillion won from a month earlier. The figure has climbed steadily since November, driven by growth in short-term deposits and funds awaiting investment.
What to Watch
Markets will closely track whether the Strait of Hormuz reopening proceeds as announced on Friday, as any delay or breakdown in the US-Iran deal could quickly reverse the risk-on trade. Sustained lower oil prices, if they hold, could provide further support to equity markets and ease inflationary pressure across Asia.
Point of View
And its durability depends entirely on a diplomatic agreement that has not yet been fully executed. The Strait of Hormuz handles roughly 20 percent of global oil flows, so the market is pricing in a best-case scenario before Friday's announced reopening. The standout gainers — Daewoo Engineering and LIG D&A — reveal a split bet: one on Middle East reconstruction business, the other on sustained defence demand. Both cannot fully be right simultaneously. If the Hormuz opening slips or faces conditions, the reversal could be as sharp as the rally.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did Seoul's KOSPI rise on 16 June?
The KOSPI climbed 145.52 points to 8,691.5 after US President Donald Trump announced a preliminary agreement with Iran to reopen the Strait of Hormuz. The news lifted global risk appetite, sent Wall Street to record highs overnight, and pushed oil prices sharply lower.
What is the US-Iran Strait of Hormuz deal?
According to Trump, a preliminary agreement has been signed to end the US-Iran conflict, with the Strait of Hormuz — a critical global oil shipping lane — set to be fully reopened by Friday. The full terms of the deal have not been publicly detailed.
Which South Korean stocks gained the most?
Daewoo Engineering & Construction surged 22.71 percent on expectations of new Middle East business, while defence firm LIG D&A jumped 18.82 percent after announcing an air defence partnership with Germany's Rheinmetall. SK Hynix rose 2.91 percent and Samsung Electronics gained 0.89 percent.
How did oil prices react to the US-Iran deal?
Oil prices fell sharply: Brent crude dropped 4.76 percent to $83.17 per barrel and US WTI crude fell 4.87 percent to $80.75 per barrel. The decline eased inflation concerns and contributed to the positive equity market mood.
What does South Korea's M2 money supply data show?
Bank of Korea data released on Tuesday showed South Korea's M2 money supply averaged 4,153.9 trillion won ($2.74 trillion) in April, up 0.6 percent from March. The metric has risen steadily since November, driven by growth in short-term deposits and investment-waiting funds.
