South Korea’s benchmark KOSPI index fell more than 7% on Tuesday as investors reacted to escalating tensions in the Middle East and the de facto closure of the Strait of Hormuz, a critical global oil shipping route. International oil prices remained volatile, though gains moderated from earlier spikes, while the dollar strengthened on safe-haven demand.

The Ministry of Economy and Finance saidit is monitoring domestic and global energy and financial markets around the clock and stands ready to deploy a market stabilization program exceeding $68 billion (100 trillion won) if needed. The government reiterated that South Korea holds sufficient