The South Korean won weakened just below 1,490 per dollar, extending losses near its weakest level since 2009, as surging oil prices and a broader risk-off mood pressured sentiment. Brent crude jumped above $100 per barrel for the first time since 2022 after Iran’s new leader signaled the Strait of Hormuz should remain closed and attacks on vessels in the region intensified, raising fears of prolonged supply disruptions. Higher energy prices added pressure on the won, as South Korea relies heavily on imported crude, increasing demand for dollars. Global markets also turned risk-averse, with US stocks sliding and Asian equities falling sharply, including the KOSPI. Meanwhile, concerns about the country’s export outlook persisted after the United States launched Section 301 investigations into several major economies, including South Korea, over alleged unfair trade practices tied to excess manufacturing capacity, raising the risk of tariffs on key export sectors.
