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UAE halts trade with Iran as KOSPI triggers circuit breaker

South Korea’s KOSPI hit a circuit breaker during the broad risk selloff, while oil extended gains for a fourth day amid Hormuz related fears.

Reported · Written up by our desk · Major Pairs

Asian equities fell sharply on Wednesday, with South Korea’s KOSPI triggering a circuit breaker as the risk backdrop worsened across the region.

Oil prices extended gains for a fourth day amid escalating UAE Iran tensions, after the UAE formally halted all trade, commercial and financial dealings with Iran, according to a UAE Ministry of Foreign Affairs official.

Iran rejected the UAE’s earlier missile accusation and said the claims were unfounded, while France also expelled Iranian diplomats, adding to market pressure.

The repricing in interest rate expectations also factored in, with Australia’s RBA deputy governor Hauser warning that inflation remains too high and that monetary policy may need to bring it down further, with rate hike risks seen if inflation persists.

Latest closeKospi 6,813.34 ▲3.6%

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