Shares of Korean oil refiners fell sharply on Thursday after international crude prices dropped on news that the United States and Iran effectively agreed to a two-week ceasefire.
According to Korea Exchange (KRX) data, Heungkoo Petroleum was trading at 18,890 won on the KOSDAQ market, down 3,960 won (17.33%) from the previous session. Jungang Enerbis also fell 4,150 won (17.11%) to 20,100 won. Oil-related stocks on the main KOSPI market declined across the board, with Hankook Oil (-11.12%) and Hankook ANKOR Oil (17.14%) both posting double-digit losses.
The sell-off was driven by falling international crude prices after reports emerged that the U.S. and Iran had effectively reached a two-week ceasefire agreement. On Wednesday, U.S. President Donald Trump posted on Truth Social, "I agree to a two-week cessation of bombing and attacking Iran, contingent on Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz."
International crude prices had recently surged after the Strait of Hormuz, through which 25% of global oil and gas shipments pass, was blocked. According to Investing.com, West Texas Intermediate (WTI) crude futures for May delivery plunged 14.45% from the previous session to $96.63 per barrel. It was the first time WTI futures fell below $100 during trading since the 2nd of this month.
