Seoul: South Korean stocks started higher Monday as the United States paused strikes on Iran over the weekend, easing military tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) added 115.65 points, or 1.73 percent, to 6,806.27 at the opening bell.
According to Yonhap News Agency, the U.S. has held off its attack on Iran since Friday after 13 days of air strikes, raising hopes of a diplomatic solution to the near five-month war. This development has contributed to a decline in oil prices, with Brent crude futures dropping 5.7 percent to US$91 per barrel and West Texas Intermediate slipping 5.5 percent to $84. Brent crude, the international standard, briefly topped $100 a barrel last week as the U.S.-Iran conflict spread beyond the Strait of Hormuz to the Red Sea.
Additionally, over the weekend, South Korean and U.S. tech companies agreed to pursue a series of cooperation projects worth a combined US$950 billion during an artificial intelligence summit hosted by the South Korean government in San Francisco. The projects include a long-term deal under which SK Group will supply $750 billion worth of high-performance semiconductors to Nvidia and others.