South Korea’s stock market crashed 5% amid escalating U.S.-Iran tensions over the Strait of Hormuz, triggering global market turmoil.

South Korea’s KOSPI index plunged 5% on Monday, triggering a trading halt, as U.S.-Iran tensions escalated over the Strait of Hormuz, with President Trump warning of destroying Iran’s power plants if the waterway remained closed. Iran retaliated with threats against energy infrastructure, sparking global market declines, including drops in Japan, Hong Kong, and China. The Korean won hit a 17-year low, oil prices surged, and global investors fled risk assets amid fears of supply disruptions and inflation.