The South Korean won depreciated to around 1,487 per dollar, extending the previous session’s losses as global risk sentiment worsened amid renewed geopolitical tensions in the Middle East. The move followed the breakdown of US–Iran talks without an agreement and Washington’s subsequent decision to impose a naval blockade on Iranian ports. This escalation intensified fears of a drawn-out conflict and bolstered safe-haven demand for the US dollar.
At the same time, crude oil prices climbed above $100 per barrel, putting additional downward pressure on the won by driving up South Korea’s energy import costs. As a major energy importer, the country is particularly vulnerable to swings in oil prices. Foreign selling in the domestic equity market further contributed to capital outflows, while a broader pullback in global risk-taking also weighed on the currency.
On the domestic front, South Korean authorities are working to stabilise energy supplies and diversify crude sources, including increased procurement from Kazakhstan and the United States.
