> ## Content Index > Fetch the complete content index at: https://bullquill.com/llms.txt > Use this file to discover other available public pages before exploring further. # KOSPI falls 1% to 5,493 as oil and Iran tensions weigh on Seoul - URL: https://bullquill.com/kospi-falls-1-percent-oil-iran-tensions/ - Published: 2026-10-26T01:18:20.000Z - Updated: 2026-10-26T01:18:20.000Z - Description: Seoul's benchmark gave up a brief recovery and slid about 1% in Monday morning trade, with local reports pointing to surging oil prices, Middle East tensions and a heavy week of chip earnings and a Fed decision. - Author: Rowan Ashby - Tags: Markets, Breaking, Trending, KOSPI, South Korea, SK Hynix, Samsung Electronics, Iran, #lang-en, #tr-kospi-falls-1-percent-oil-iran-tensions ## Key takeaways - The KOSPI Composite Index traded at 5,493.68 at 00:54 UTC, down 1.02% from Friday's close of 5,550.30, with a 1.10% drop in the preceding 30 minutes (Yahoo Finance). - Yonhap and SBS attributed the weak open to an oil price surge after reports that the US and Israel were weighing renewed strikes on Iran. - The index had cut its losses to 0.09% by 09:24 KST and briefly turned positive, according to SBS, before sliding again. - No specific trigger for the renewed drop after 09:24 KST has been confirmed by news reports so far. - SK Hynix (October 28) and Samsung Electronics (October 29) report earnings this week, alongside the Federal Reserve's October 27-28 meeting. South Korea's KOSPI fell 1.02% to 5,493.68 at 00:54 UTC on Monday, October 26 (09:54 in Seoul), according to Yahoo Finance data, after a brief morning recovery faded. Local reports link the weakness to higher oil prices and renewed Iran strike fears. ## What happened: why the KOSPI falls on Monday The benchmark opened 51.25 points, or 0.92%, lower at 5,499.05 at 00:00 UTC (09:00 KST), Yonhap reported via [The Korea Times](https://www.koreatimes.co.kr/economy/20261026/seoul-stocks-open-lower-ahead-of-earnings-reports-fed-decision?ref=bullquill.com). By 00:15 UTC it had pared the loss to 0.46% at 5,524.85. Buyers kept returning for a few more minutes. According to [SBS](https://news.sbs.co.kr/english/article.do?news%5Fid=N1008814633&ref=bullquill.com), the KOSPI stood at 5,545.18 at 00:24 UTC, down only 0.09%, and briefly traded above Friday's close. The recovery did not hold. By 00:54 UTC the index was at 5,493.68, below its opening level, based on Yahoo Finance data. | Time (UTC) | Time (KST) | KOSPI level | Change vs Friday close | Source | | ------------ | ------------ | ----------- | ---------------------- | --------------------------------------- | | Oct 23 close | Oct 23 close | 5,550.30 | — | Korea Exchange via Seoul Economic Daily | | 00:00 | 09:00 | 5,499.05 | \-0.92% | Yonhap | | 00:15 | 09:15 | 5,524.85 | \-0.46% | Yonhap | | 00:24 | 09:24 | 5,545.18 | \-0.09% | SBS | | 00:54 | 09:54 | 5,493.68 | \-1.02% | Yahoo Finance | ## What we know ### Oil and the Middle East SBS said the open was hit by "a sharp surge in international oil prices" after Middle East tensions flared over the weekend. Brent crude rose 3.1% to $116.72 a barrel on Friday, its highest level since late April, and WTI climbed to $103.27, according to SBS and [Seoul Economic Daily](https://en.sedaily.com/finance/2026/10/26/us-fed-meeting-chip-earnings-set-direction-for-kospi-rebound?ref=bullquill.com). That paper said pro-Iran rebels attacked a Saudi Arabian oil field on October 23 and that renewed US and Israeli strikes on Iran were seen as likely. Yonhap noted that US President Donald Trump signaled he was willing to resume strikes. Our earlier report covers [Trump's warning that the US could strike Iran](https://bullquill.com/trump-says-us-could-strike-iran-tomorrow/). ### Stocks and flows At 09:15 KST, Samsung Electronics was down 0.7%, LG Energy Solution down 2.74% and Hyundai Motor down 1.69%, while SK Hynix gained 1.88%, Yonhap reported. SBS said foreign investors were net sellers of 27.9 billion won on the main board as of 09:24 KST, institutions sold 5.4 billion won, and individuals bought 24.4 billion won. The won traded at 1,323.6 per dollar at 09:15 KST, 2.6 won stronger than Friday, according to Yonhap. ### The week ahead Yonhap said investors were cautious before SK Hynix earnings on Wednesday and Samsung Electronics on Thursday. The Fed's two-day meeting starts Tuesday, US time, and is widely expected to end with rates unchanged. ## What we don't know yet - The cause of the second leg lower, after about 09:30 KST, has not been confirmed. No news report reviewed by Bullquill links it to a single headline. - Updated foreign and institutional flow figures for the full morning were not available at the time of writing. - No official confirmation of new US or Israeli strikes on Iran has been reported; the reports describe strikes being considered. ## Background Monday's dip follows a volatile stretch. The KOSPI lost 2.08% last week and 14.46% the week before, according to Seoul Economic Daily. It jumped 3.29% on October 21, fell 3.52% on October 22, and swung more than 4% intraday on October 23 before turning higher. See our [South Korea stocks weekly brief](https://bullquill.com/south-korea-stocks-weekly-brief-2026-10-23/), our report on the [3% KOSPI drop on chip stocks](https://bullquill.com/kospi-drops-3-percent-chip-stocks-us-selloff/), and [the KOSPI slip after the Bank of Korea held rates](https://bullquill.com/kospi-slips-after-rebound-bok-holds-rates/). Doubts about returns on large AI investments have also weighed on chip stocks, Yonhap and Seoul Economic Daily said, citing Wall Street's Friday decline. ## What it means Korea is a large crude importer. Higher oil prices can raise import costs and feed inflation, and they can reduce the chance of rate cuts. Our explainer on [how oil price shocks hit inflation and rates](https://bullquill.com/how-oil-price-shocks-hit-inflation-and-rates/) covers how this works. The next scheduled events for Seoul's market are the Fed's decision on October 28 and the results from SK Hynix and Samsung Electronics, two of the index's largest companies. Until the cause of today's later decline is confirmed, the move is best read as part of an already volatile market rather than a reaction to one new event. ## Frequently asked questions ### Why did the KOSPI fall on October 26, 2026? Yonhap and SBS reports tied Monday's weak open to a sharp rise in oil prices after reports that the US and Israel were considering renewed strikes on Iran, plus caution before chip earnings and the Fed meeting. No single confirmed trigger has been reported for the second leg lower around 09:50 KST. ### Where did the KOSPI close on Friday, October 23, 2026? The KOSPI closed at 5,550.30 on October 23, according to Korea Exchange data cited by Seoul Economic Daily, down 2.08% for the week. ### When do SK Hynix and Samsung Electronics report earnings? SK Hynix reports third-quarter results on Wednesday, October 28, and Samsung Electronics on Thursday, October 29, according to Seoul Economic Daily and Yonhap. This article is for information only and is not investment advice.