Today, the domestic stock market fluctuated amid shockwaves from the Middle East, including the pro-Iran Houthi rebels from Yemen's declaration to blockade the Red Sea, amid escalating armed conflict between the U.S. and Iran, simultaneously triggering surges in specific shipping stocks and raising concerns about decreased global crude oil supply.
The pro-Iran Yemeni Houthi rebels declared a maritime blockade of Saudi Arabia and closure of the Red Sea today, heightening international instability. This declaration came as armed conflict between the U.S. and Iran intensified. U.S. President Donald Trump initiated new airstrikes against Iran in retaliation for an incident on the 17th that resulted in two U.S. military personnel killed and one missing. President Trump displayed strong resolve for retaliation, warning that "Iran will pay multiple times the price for each U.S. soldier killed."
Diagnostics indicate that if the Houthi rebels actually blockade the Bab el-Mandeb Strait, a strategic chokepoint connecting the Red Sea and Arabian Sea, global crude oil supply could decrease by up to 7%, putting the global energy market on high alert.
In response to this escalating Middle East crisis, some shipping stocks in the domestic stock market displayed theme stock characteristics and showed sharp gains. Heung-A Shipping traded at 1,927 won, up 5.82% from the previous close as of 9:54 a.m., and briefly surged to 2,130 won, up 16.97% shortly after market opening. At the same time, STX Green Logistics (465770) also showed strength, trading at 4,830 won, up 16.67%. These stocks have shown price movements whenever Middle East crises emerged this year.