Seoul Stock Exchange Rises Amid Oil Price Surge and Hormuz Strait Tensions

Global markets opened with mixed trends on Tuesday, focusing on heightened uncertainty around the Strait of Hormuz and a sharp rise in oil prices. U.S. President Donald Trump declared overnight that the U.S. Navy has cleared mines from the Strait and now holds "100%" control over the vital maritime passage. He described the U.S. naval presence as a "steel wall," dismissing sporadic Iranian mine-laying efforts. This development has intensified tensions between Washington and Tehran, particularly over compensation demands.

In Asian markets, the Seoul Stock Exchange led gains with a 1.4% rise, driven by a 5% surge in Samsung Electronics shares. Hong Kong's market declined by about 0.6%, while Shanghai remained stable. Japan's markets were closed for a holiday. Oil prices stabilized after a 5% jump the previous day, with West Texas Intermediate crude closing at $82.13 per barrel and Brent crude at $87.72. The spike followed Trump's remarks that the U.S. is only partially negotiating with Iran and will maintain maritime pressure. Iranian Foreign Ministry spokesman Esmail Baghai countered that conditions for reopening the strait are unmet as long as the U.S. blockade continues. The escalation coincides with U.S. strategic petroleum reserves dropping below 300 million barrels, the lowest since 1983.

Gold prices neared a seven-week high amid technical momentum, concerns over missing out on gains, and increased purchases by China's central bank. Market watchers anticipate upcoming U.S. consumer and producer price index reports to influence Federal Reserve interest rate decisions, with a roughly 50% chance of a rate hike in September.

On Wall Street, futures edged higher following a day of losses driven by technology sector weakness and energy price surges. The S&P 500 fell 0.1%, Nasdaq dropped 0.3%, and Dow Jones declined 0.1% amid inflation worries and rising long-term Treasury yields nearing 5.25%, pressuring real estate stocks. Semiconductor stocks retreated after strong gains last week, with Intel planning a $15 billion equity raise, potentially increasing to $20 billion. Nvidia partnered with major asset managers on a $500 billion AI infrastructure initiative, while Broadcom showed growth potential due to AI chip demand.

In Tel Aviv, dual-listed stocks are expected to open lower, with Tower Semiconductor and Elbit Systems down 4% and 2%, respectively. The TA-35 index closed down 0.3%, while the broader TA-90 fell 1.7%, led by a 3.1% drop in construction stocks. Next Vision shares plunged 45% from their peak despite a 138% revenue increase in Q2. Renewable energy company Doral announced a $415 million investment to increase its U.S. stake to 53.3%, with its shares initially rising 7% before settling with modest gains. Market breadth on Wall Street shows increasing participation, suggesting potential for continued rally supported by AI-driven capital expenditures beyond the tech sector.