South Korea’s Kospi Hits Record High as Iran Tensions Spike Oil Prices

CNBC reported Monday that South Korea’s Kospi surged to an all-time high at the open, leading a mixed session across Asia-Pacific equities as oil prices climbed sharply on renewed fears of a prolonged U.S.-Iran conflict.

Kospi Record High Leads Uneven Asia Session

The Kospi opened up 3.67%, marking its strongest-ever closing level. The smaller Kosdaq index edged marginally higher. Japan’s Nikkei 225 added 0.81%, while the broader Topix gained a modest 0.32%. Australia’s S&P/ASX 200 bucked the regional trend, slipping 0.71%. Hong Kong’s Hang Seng futures pointed below the index’s last close of 26,393.71, signaling a softer open there.

U.S. futures painted a cautious picture overnight. Dow Jones futures fell roughly 143 points, while S&P 500 and Nasdaq 100 contracts each lost around 0.3%.

Oil Surges as Iran Rejects U.S. Terms

Energy markets drove much of the anxiety. West Texas Intermediate futures for June rose more than 3% to approximately $98.65 per barrel. Brent crude for July climbed a similar margin to around $104.66 per barrel, crossing the psychologically significant $100 threshold.

The catalyst was President Donald Trump‘s flat rejection of Tehran’s latest diplomatic overture. Iran had submitted a proposal calling for a halt to hostilities across all fronts, alongside the removal of U.S. sanctions. Trump dismissed the offer publicly, describing it as completely unacceptable. Israeli Prime Minister Benjamin Netanyahu reinforced the hard line, stating over the weekend that the conflict with Iran remains far from finished.

Background: Hormuz Closure and Market Disruption

Iran’s decision to close the Strait of Hormuz following the outbreak of hostilities has been a persistent drag on global energy supply chains. The strait handles a significant share of the world’s seaborne oil traffic. Its closure has pushed U.S. gasoline prices sharply higher, adding an inflationary dimension to the geopolitical standoff.

The tensions have cast a shadow over an otherwise robust stretch for Wall Street. The S&P 500 and the Nasdaq Composite both notched six consecutive weekly gains last week, the first such streak for either index since 2024. The Dow Jones Industrial Average rose modestly for the week, recording its fifth gain in the past six sessions.

Trump’s China Trip Adds Another Variable

Investors are also monitoring Trump‘s planned trip to China later this week, where he is expected to meet with President Xi Jinping. That meeting adds another layer of complexity to an already fragile geopolitical backdrop. Any signals on trade or energy diplomacy could shift sentiment quickly across Asian and U.S. markets alike.

Read Next: Trump and Xi Set for High-Stakes Summit as Trade and Iran Dominate Agenda