Oil tops $100 as Middle East risks weigh on Seoul stocks and airlines

  • Oil above $100 intensified inflation concerns, sending the KOSPI down 1.76% and pressuring South Korean airline shares.
  • October WTI futures settled at $102.48 after rising 6.69%, while foreign and institutional investors sold 2.4225 trillion won and 1.6476 trillion won.
  • Korean Air’s second-quarter operating profit fell 34.4% as fuel costs rose 110.9%; Sky Quarry shares gained 20.22% to $3.21.

Renewed Middle East tensions, shipping risks and escalating U.S.-Iran conflict pushed international oil prices above $100 per barrel on September 11, weighing on South Korean stocks and airline shares while lifting Sky Quarry. The Korea Composite Stock Price Index opened down 3.29% and closed at 6,909.91, down 124.01 points, or 1.76%, as foreign and institutional investors net sold 2.4225 trillion won and 1.6476 trillion won, respectively. October-delivery WTI futures rose 6.69% overnight to settle at $102.48 per barrel, while Brent settled at $101.21, its highest level since May 22 and first close above $100 since July 23. Korean Air fell 2.88% to 28,700 won, Jin Air dropped 3.41% to 5,940 won, Jeju Air declined 2.45% to 4,785 won and Asiana Airlines lost 2.03%. Korean Air’s second-quarter operating profit fell 34.4% year over year to 261.8 billion won despite record standalone revenue, as fuel costs rose 110.9% to 1.9991 trillion won. Samsung Electronics fell 3.53% and SK Hynix declined 2.21%, although security, quantum-cryptography and multilayer ceramic capacitor shares gained. Sky Quarry shares rose 20.22% to $3.21, while prediction-market pricing put the odds of a new crude record by December 31 at 14%.

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