Crypto: Korea Halts Trading As Key Indexes Drop 10% On Middle East Crisis

South Korea’s Kospi and Kosdaq tripped circuit breakers as the Middle East conflict drove a global exodus from stocks.

The Korean Stock Exchange was forced to halt trading after the escalating conflict in the Middle East prompted a major share price plunge on Wednesday.

The South Korean Kospi and Kosdaq each plunged more than 10% during morning trading in Seoul, triggering a circuit breaker as the indexes saw their worst session since August 2024, Channel News Asia reported on Wednesday.

Japan’s stock markets also saw heavy losses on Wednesday, with the Nikkei and Topix both down almost 4%. Hong Kong’s Hang Seng Index was down 3%, and China’s Shanghai Composite had dropped 1.3%, according to Google Finance.

“Investors sold down risk assets, and in particular, the Nikkei as well as the Kospi, which outperform other major indexes, have become a target of the heavier selloff as they try to book profits,” Kazuaki Shimada, chief strategist at IwaiCosmo Securities, told CNA.

“South Korea imports 94% of its oil, with 75% coming from the Middle East. So, it is easy to see why its ‘degens’ are panicking,” said Bianco Research CEO Jim Bianco.

Thailand, another major Middle East oil importer, saw its stock exchange slide 7.8% on Wednesday.

The Trump administration said that attacks on Iran are intensifying, with the US targeting a meeting of the nation’s top leaders while they were deciding who would lead, reported Fox News on Wednesday.

The move follows the closure of the Strait of Hormuz after threats from Iran to target oil and cargo ships passing through the critical waterway.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz as soon as possible,” Donald Trump said on Truth Social.

Source: CoinTelegraph