▲ In this Reuters photo, smoke rises following an Iranian missile strike, as the U.S.-Israeli conflict with Iran continues, in southern Israel on March 29, 2026. (Yonhap)

Korean currency-volatility

Korean won hits fresh 17-yr low over heightened global oil supply concerns

SEOUL, March 31 (Yonhap) -- The South Korean won opened lower against the U.S. dollar Tuesday, hitting its weakest level in 17 years, as the escalating Middle East conflict fueled fears of further disruptions to global oil supplies and broader economic impacts.

The currency opened at 1,519.9 per dollar, down 4.2 won from the previous session to extend its downward spiral.

It marked the lowest level since March 10, 2009, when the won fell to 1,561 per dollar in intraday trading as South Korea grappled with the global financial crisis.

The won has hovered around the psychologically significant 1,500 mark in recent sessions and fell to as low as 1,517.3 on a closing basis last week, as the war, which began in late February following U.S.-Israeli strikes on Iran, shows no sign of ending.

On Monday (U.S. time), U.S. President Donald Trump threatened to "completely obliterate" Kharg Island, a key oil hub, along with Iran's power plants and oil facilities if a peace deal with Washington is not reached "shortly."

Tehran, however, dismissed the peace proposals as "unrealistic, illogical and excessive," while a parliamentary security committee approved a draft bill to introduce a toll system for the Strait of Hormuz, according to foreign media reports.

The escalating conflict pushed up global oil prices. U.S. West Texas Intermediate (WTI) crude futures for May delivery rose 3.25 percent to $102.88 per barrel, surpassing the $100 mark on a closing basis for the first time since July 2022.

The benchmark Korea Composite Stock Price Index (KOSPI) opened nearly 3 percent lower Tuesday amid heavy selling by offshore investors.

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