KOSPI, influenced by the easing of Middle East tensions, once again broke through 6,000 points during trading.

South Korea’s Composite Stock Price Index (KOSPI) once again broke through 6,000 points during intraday trading on the 14th, as expectations of easing Middle East tensions are rapidly restoring investor confidence in the domestic stock market.

That day, KOSPI opened at 5,960.00 points, up 151.38 points (2.61%) from the previous trading day, and the gains continued to expand. At 10:12 a.m., the index rose by 191.56 points (3.30%) to 6,000.18 points. This was the first time since March 3 (the first trading day after the outbreak of the US-Iran war) that KOSPI re-entered the 6,000-point zone intraday. At that time, the index once reached 6,180.45 points, but due to the impact of the war, it ultimately closed sharply down by 7.24%, at 5,791.91 points.

Based on the closing price, the last time KOSPI stood above 6,000 points was on the trading day just before the outbreak of the war, February 27, when the closing price was 6,244.13 points. Since then, the market has experienced significant fluctuations due to concerns over how military conflicts in the Middle East might affect international oil prices, logistics, and exchange rates. Especially in South Korea, where the stock market structure is highly dependent on energy imports and sensitive to external variables, changes in Middle East tensions often directly influence the index’s movement.

The immediate catalyst for this rebound was the renewed possibility of negotiations between the US and Iran. The two countries held lengthy 21-hour peace talks last weekend, but no agreement was reached due to differences over the opening of the Strait of Hormuz and Iran’s nuclear issues. Nevertheless, with foreign media reports indicating that both sides are engaging in formal negotiations and maintaining contact outside the negotiation venues, the market is beginning to lean toward the view that the worst-case conflict scenario can be avoided. U.S. President Donald Trump also stated on the 13th (local time) during a White House press briefing that he has received contact from Iran and that the other side is very eager to reach an agreement.

Markets are particularly sensitive to variables like war or diplomatic conflicts, which are difficult to predict. Conversely, as soon as signals of potential de-escalation emerge, investors tend to re-enter risk assets such as stocks. The rise of KOSPI on that day can be better understood not as an immediate improvement in real economic conditions but as a rebound driven by the easing of fears related to geopolitical risks (such as war and political-military conflicts).

However, the intraday recovery above 6,000 points does not mean that all uncertainties have been eliminated. Whether the renewed negotiations can translate into actual agreements, and how stable the tensions related to the Strait of Hormuz and oil supply will be, are factors likely to influence the market’s future direction. This trend could continue with rapid gains depending on further statements from the US and Iran, progress in negotiations, and international oil prices, or it could experience significant volatility again.