Early on the 13th, domestic oil and gas stocks in Korea are rising across the board. Analysts say the surge in international oil prices followed the collapse of the first cease-fire talks between the United States and Iran and the U.S. signaling it will reimpose a blockade of the Strait of Hormuz.
As of 9:30 a.m., Hung-gu Oil is trading at 19,960 won, up 3.10% (600 won) from the previous session. Shortly after the open, Hung-gu Oil shares briefly spiked to 21,250 won.
At the same time, KIM ANKOR Oilfield Overseas Resources Development Fund (up 4.80%), Joong Ang Enervis (up 1.39%), and Korea Petroleum (up 1.81%) are also gaining.
The United States and Iran held their first cease-fire talks on the 11th, but the talks ultimately collapsed as differences over Iran's nuclear armament could not be narrowed.
U.S. President Donald Trump said on the morning of the 12th on social media, after the talks collapsed, that "the U.S. Navy will immediately begin blockade measures on all ships entering or leaving the Strait of Hormuz." The U.S. military said it would begin blockade measures on all maritime traffic entering and leaving Iranian ports starting at 10 a.m. on the 13th (11 p.m. in Korea on the 13th).
International oil prices are also surging. West Texas Intermediate (WTI) is now at $104.45, up 8.16% from the previous session.