With expectations growing for the resumption of traffic through the Strait of Hormuz, shipping stocks were broadly weaker early on the 17th.
As of 9:25 a.m., Korea Line Corporation was trading at 2,330 won on the Korea Exchange, down 185 won (7.36%) from the previous session. At the same time, STX Green Logis also plunged 640 won (8.23%) to 7,140 won.
At the same time, KSS LINE (4.23%) and HMM (0.72%) were also lower.
As the possibility of passage through the Strait of Hormuz was raised, expectations for higher shipping rates weakened, which appears to have dampened investor sentiment.
The Strait of Hormuz is a key route through which about 20% of the world's seaborne crude oil volume passes, and if a blockade or military clash occurs, transportation expense could rise due to disruptions to vessel operations, higher insurance premiums, and the use of alternative routes.
After the U.S. and Israel attacked Iran, Iran effectively blockaded the Strait of Hormuz, but on the previous day, reports of partial passage being possible emerged, easing tensions.
Iran Minister of Foreign Affairs Abbas Araghchi reiterated in an interview with Iran's semi-official outlet SNN TV on the 16th (local time) that it is closed only to "enemies and those who support their attacks." In practice, ships from Iran as well as China, India, and Pakistan are said to be transiting the Strait of Hormuz.