A U.S.-Iran ceasefire and a planned peace agreement are easing a major external risk for South Korea’s economy by reducing uncertainty over oil supply and global shipping. U.S. President Donald Trump says Washington and Tehran have reached a deal aimed at ending their monthslong conflict, and that the Strait of Hormuz—through which much of Korea’s imported energy and cargo moves—will reopen after the agreement is formally signed later this week. Oil prices fall after the announcement, with international benchmarks retreating from near $100 levels seen during the fighting; Brent is reported around the high-$80s per barrel and West Texas Intermediate around the mid-$80s.
South Korean firms express near-term relief, particularly in petrochemicals, aviation, and manufacturing, where logistics disruptions and volatile energy costs had been weighing on operations. With the conflict having disrupted Middle East supply chains, including naphtha shipments used as a petrochemical feedstock, domestic naphtha cracking centers reportedly reduced output to as low as 50% and issued force majeure notices to some overseas customers. Analysts note that while risks ease, oil prices may take time to stabilize and return to pre-war levels.
