The benchmark KOSPI fell nearly 2% to around 6,950 on Monday, reversing the previous session’s gains as renewed Middle East uncertainty and higher oil prices reduced risk appetite. Brent crude rose above $105 a barrel after the US rejected Iran’s conditional proposal concerning the Strait of Hormuz. Higher US Treasury yields, with the 10-year yield nearing 5.17%, also fueled concerns about tighter global financial conditions and additional rate hikes. Samsung Electronics and SK hynix dropped nearly 4% and more than 4%, respectively, while SK Square, Samsung C&T, SK Inc and Hyosung Heavy Industries also declined. Strong semiconductor earnings prospects offered some support, with Samsung Electronics expected to report more than KRW 100 trillion in third-quarter operating profit and sector business sentiment reaching a record high for the fourth quarter.