Economy News

Oil plunges and stocks soar after US-Iran ceasefire: Kospi jumps nearly 7%

Oil prices tumbled and stock markets surged worldwide on Wednesday 8 April after the US and Iran agreed a two-week ceasefire. NPR reports that President Trump announced the deal on social media on Tuesday evening, less than two hours before his deadline for Iran, and said it depended on Iran immediately reopening the Strait of Hormuz, through which about 20% of global oil flows.

AP reports that US crude fell 16.4% to settle at $94.41 a barrel, while Brent fell 13.3% to $94.75, having briefly topped $119 at the height of war fears. The Dow rose 1,325 points (2.8%), the S&P 500 2.5% and the Nasdaq 2.8%. Germany's DAX gained 5.1%, Japan's Nikkei 225 5.4% and South Korea's Kospi 6.9%. Korea JoongAng Daily says the Kospi closed at 5,872.34 and the won hit its strongest level since 11 March; construction firms such as Daewoo E&C jumped almost 30% on hopes of rebuilding work in Iran, while defence stocks fell.

“Since it has reopened for now, the market sees the major risk as having been largely resolved.” — Kang Jin-hyuk, Shinhan Securities, via Korea JoongAng Daily

How each outlet framed it

• AP — the global numbers, with a note of caution: Brent was still well above its pre-war level of about $70.
• NPR — the deal itself and its condition on Hormuz, warning that damaged refineries mean energy markets may take time to recover.
• The Korea Times — Seoul's view: a buy-side sidecar halted programme trading, and Samsung rose 7.12% after a record first-quarter operating profit of 57 trillion won.
• Korea JoongAng Daily — winners and losers by sector, from builders to defence firms.

Where the numbers differ: The Korea Times put net foreign buying on the Kospi at 3.12 trillion won; Korea JoongAng Daily put it at 2.43 trillion won. Brent's level also varies by time of writing, from about $93 in The Korea Times to $94.75 at AP's settlement.