The won-dollar exchange rate against the U.S. dollar closed at 1,507 won on the 26th. It rose 7.3 won from the previous day.
This is seen as the result of signs that the war between the United States and Iran will drag on. When geopolitical risk rises like this, investor sentiment toward risk assets weakens in the market, and the won tends to fall in value.
Overnight, the United States increased pressure, urging Iran to acknowledge military defeat. Karoline Leavitt, White House Spokesperson, said at a press briefing on the 25th (local time), "If Iran does not understand that they have been defeated militarily and will continue to be defeated going forward, President Trump will make sure they take a bigger hit than ever before." She added, "President Trump is not a braggart and is prepared to unleash hell," and "Iran must never miscalculate again."
Iran, rather than raising the white flag, appears poised to retaliate. On the same day, CNN reported that Iran is preparing for a U.S. ground attack. According to CNN, Iran has deployed additional troops and air defenses to Kharg Island, a key crude oil export hub. It has also laid booby traps such as antipersonnel and antitank mines around the island. Kharg Island is an area where U.S. elite forces are said to be likely to be deployed.
Park Sang-hyun, an analyst at iM Securities, said, "We hope negotiations between the United States and Iran proceed smoothly, but the situation is not easy," adding, "With the war deadline (four to six weeks) presented by President Trump approaching, attention is on what decision he will make this weekend."