South Korea’s KOSPI reversed from a record high above 8,046 to fall more than 2% after Trump signalled diminishing patience with Iran, lifting oil prices and pulling US equity futures lower.
Summary:
- South Korea’s KOSPI hit an all-time high of 8,045+ before reversing to fall more than 2%, though it remained on course for a sixth consecutive weekly gain, up more than 3% for the week
- Trump said in a Fox News interview he would not be much more patient with Iran and that it is only a matter of time, urging Tehran to reach a deal with Washington
- Trump also suggested Iran’s enriched uranium could be entombed but said he would prefer to remove it
- Washington reportedly informed Israel of the possibility that Trump could order strikes inside Iran, with Israeli officials said to be on high alert
- Oil prices edged higher as geopolitical escalation risk increased, while US equity futures turned lower following Trump’s remarks
South Korean stocks swung sharply on Friday, erasing a historic rally to record levels after US President Donald Trump signalled hardening resolve toward Iran, sending a chill through risk assets and lifting oil prices on fresh fears of geopolitical escalation.
The KOSPI briefly touched an all-time high of 8,046.78 before reversing course to fall more than 2%, as Trump’s comments in a Fox News interview aired Thursday night shifted market sentiment. Despite the intraday reversal, the index remained more than 3% higher for the week and on track for a sixth consecutive weekly gain, a run that had carried it to historic territory before Friday’s selloff.
Trump’s remarks were pointed. He said he would not be much more patient with Iran and framed the standoff as a matter of time, pressing Tehran to reach a deal with Washington. He also addressed the question of Iran’s enriched uranium stockpile, suggesting it could be entombed but expressing a preference for removing it entirely, comments that hardened the impression of a president prepared to consider more forceful options.
The market reaction was swift. US stock futures turned lower following the interview, with the South Korean market extending losses in tandem. Traders cited Trump’s Iran comments directly as the trigger for the reversal from record highs.
Adding to the unease, reports emerged that Washington had informed Israel of the possibility that Trump could order strikes inside Iran. Israeli officials were said to be on high alert this weekend in anticipation of a potential decision to resume military operations. Those reports gave operational weight to what might otherwise have been read as negotiating rhetoric, and oil markets responded accordingly, edging higher as the risk of renewed conflict and further Strait of Hormuz disruption grew.
The episode underscores how finely balanced sentiment remains across global markets, where record equity levels and ongoing trade optimism are proving vulnerable to sudden shifts in the geopolitical backdrop.
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Trump’s comments represent a material escalation in rhetoric toward Iran and have injected fresh geopolitical risk premium into oil markets, which edged higher on the prospect of resumed military action. Reports that Washington has informed Israel of the possibility of strikes inside Iran, with Israeli officials said to be on high alert, add operational credibility to what might otherwise be read as negotiating pressure. Equity markets are right to reprice: a resumption of hostilities would tighten the Strait of Hormuz further, amplifying the supply shock already weighing on global inflation and growth
