The resumption of hostilities between the United States and Iran after a month-long lull has sent international oil prices soaring, propelling oil stocks to a strong start in early trading.
As of 9:23 a.m. (Korean time) on Tuesday, SK Innovation was trading at 137,100 KRW (about 100 USD), up 11,600 KRW (about 8.45 USD) (9.24%) from the previous session. S-Oil saw a rise of 8,400 KRW (about 6.12 USD) (5.60%) to 158,500 KRW (about 115 USD), while GS climbed 3,200 KRW (about 2.33 USD) (2.52%) to 130,300 KRW (about 94.89 USD).
The renewed military confrontation between the U.S. and Iran has intensified concerns over potential disruptions in oil supply. U.S. Central Command confirmed that American forces targeted two rocket launch sites on Iran’s Larak Island, marking the first public acknowledgment of attacks on Iranian targets since late July.
This escalation has triggered a sharp increase in global oil prices. On Monday, West Texas Intermediate (WTI) crude surged 2.83% to 85.76 USD per barrel, while Brent crude, the international benchmark, closed up 2.71% at 90.49 USD per barrel.
The oil price spike has amplified worries about inflation and potential interest rate hikes in the U.S., casting a shadow over Wall Street overnight. The Dow Jones Industrial Average retreated by 0.70%.
However, energy stocks bucked the trend, buoyed by expectations of improved earnings amid rising oil prices. Industry giants ExxonMobil and Chevron saw gains of 2.71% and 2.12%, respectively, highlighting the sector’s strength in the face of global tensions.