The resumption of direct armed conflict between the United States and Iran after roughly a month unsettled global markets and pushed the USD-KRW exchange rate higher. The rate closed at 1,370.4 won on September 1, up 1.8 won from the previous trading day, after reaching 1,373.5 won around 1:55 p.m. West Texas Intermediate (WTI) crude for October delivery rose 2.83% to $85.76 per barrel as investors assessed possible disruptions around the Strait of Hormuz. The Dollar Index gained 0.126 to 99.539, although dollar strength was constrained by opposition from US Treasury Secretary Scott Bessent and President Donald Trump to further Federal Reserve rate hikes. Foreign investors sold a net 491.9 billion won of South Korean equities, extending their KOSPI selling streak to three sessions. Gold spot prices rose only 0.2% to $4,448.64 per ounce after falling more than 3.5% over the previous two sessions. Higher oil prices could support safe-haven demand while also increasing inflation risks and the prospect of additional Fed tightening, which tends to weigh on non-interest-bearing gold. Gold gained approximately 10% in August, its strongest monthly increase since January, supported by the so-called debasement trade (positioning against debt and currency depreciation), but momentum weakened after Fed Chair Kevin Warsh emphasized inflation control on August 28. Markets were pricing in a greater than 60% probability of a rate hike at the September 15-16 FOMC meeting. Analysts say renewed Middle East risks and uncertainty over the Fed's policy path could increase volatility in emerging-market currencies, with the won facing depreciation pressure from higher import costs and continued foreign equity outflows.