The Korea Exchange suspended trading operations on Wednesday because major stock indexes experienced a steep decline during the increasing Middle Eastern conflict.
Seoul morning trading saw both the KOSPI and KOSDAQ drop more than 10% which activated the circuit breaker. The sharp fall marked the worst session for the indexes since August 2024.
Asian markets fall sharply
The sell-off spread across Asian markets. Japan’s Nikkei 225 and TOPIX each declined nearly 4%.
Meanwhile, Hong Kong’s Hang Seng Index fell about 3%, while China’s Shanghai Composite dropped roughly 1.3%.
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Market strategists said investors rushed to sell risk assets and lock in profits as geopolitical tensions increased.
US President Donald Trump said the United States could deploy naval escorts for oil tankers if needed.
Oil prices jumped sharply after the escalation. Brent crude rose about 14% to $82 per barrel, while West Texas Intermediate increased about 12% to $75.
Global markets lose trillions in value
Market analysts said the geopolitical shock has wiped out trillions in global equity value in recent days.
Some observers described the situation as a potential “black swan” event as volatility spread across global markets.
Crypto markets have shown a more limited reaction so far, with the total digital asset market capitalization falling slightly to around $2.39 trillion.
