The KOSPI fell 1.76% to 6,909.91 as a surge in Middle East-driven oil prices, renewed expectations for U.S. rate hikes and won weakness delivered a simultaneous market shock. The index briefly dropped to 6,802.50, while the KOSDAQ declined 1.95%. South Korea’s three-year government bond yield rose above 4% for the first time in two years and 10 months, and the won-dollar exchange rate reached 1,345.9 won. West Texas Intermediate crude rose 6.69% to $102.48 a barrel after disruptions around the Bab el-Mandeb Strait and Strait of Hormuz. U.S. inflation data strengthened expectations for Federal Reserve tightening, while the European Central Bank raised its deposit rate and the Bank of Japan faced expectations for a rate increase. SK Securities analyst Kang Dae-seung retained a 7,500 upside target for the KOSPI, with semiconductor earnings providing support despite macroeconomic pressure. Samsung Electronics and SK Hynix posted record second-quarter operating profits, although China’s CXMT has emerged as a competitive risk in memory chips.