On 13 July 2026, oil prices jumped more than 4% following a fresh flare‑up between the United States and Iran. At the same time, South Korea’s stock index KOSPI fell sharply as technology shares sold off. The events highlight how geopolitical tension can quickly affect commodity markets and equity indices worldwide.
Key Developments
- US‑led air strikes on 12 July 2026 targeted Gulf allies after an Iranian attack on a commercial vessel in the Strait of Hormuz set off renewed hostilities.
- Iran’s Revolutionary Guards warned the strait would remain closed until US interventions end.
- Both benchmark oil contracts rose up to 4.5%, reviving inflation concerns and the prospect of central‑bank rate hikes.
- South Korean equities tumbled 9% at one point, led by a 15%+ drop in SK Hynix share price.
- Tech stocks in Tokyo, Shanghai and other Asian markets also fell, while Hong Kong and Bangkok showed modest gains.
Important Facts
The oil market’s reaction is being driven by a risk premium linked to the fragile US‑Iran truce. Analysts such as Forex.com’s Fawad Razaqzada warned that traders are assuming the worst scenario. However, IG analyst Fabien Yip noted that prices are unlikely to repeat the February 28 spike because demand recovery is slow and OPEC+ is expanding output.
The OPEC+ quota expansion and the release of stranded tankers add to an oversupplied market, limiting the upside for crude.
In equities, the tech sell‑off follows weeks of volatility driven by concerns over high valuatio