{"id":64675,"date":"2026-07-12T21:38:17","date_gmt":"2026-07-13T01:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-renewed-us-iran-strikes-kospi-drops-and-gold-retreats\/64675\/"},"modified":"2026-07-12T21:38:17","modified_gmt":"2026-07-13T01:38:17","slug":"global-markets-shaken-by-renewed-us-iran-strikes-kospi-drops-and-gold-retreats","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-renewed-us-iran-strikes-kospi-drops-and-gold-retreats\/64675\/","title":{"rendered":"Global Markets Shaken by Renewed US-Iran Strikes; KOSPI Drops and Gold Retreats"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Geopolitical escalation in the Middle East<\/strong> has intensified as <strong>Iran launched at least 12 ballistic missiles<\/strong> targeting Jordan&#39;s <strong>Muwaffaq Salti Airbase<\/strong>, following fresh U.S. strikes aimed at weakening Iranian capabilities in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>South Korea\u2019s KOSPI index dropped 3%<\/strong> in early trading, leading a broader sell-off in Asian equities as investors reacted to the heightened risk of a regional war and its impact on the semiconductor supply chain.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> fell below $4,100 per ounce<\/strong>, extending a decline as the conflict-driven surge in <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> stoked <strong>inflation fears<\/strong>, reinforcing expectations that the <strong>Federal Reserve<\/strong> will maintain a &quot;higher-for-longer&quot; interest rate policy.<\/li>\n<li><strong>The UK-India Free Trade Agreement<\/strong> is set to take effect this week, serving as a critical testing ground for India&#39;s trade ambitions with Western powers by eliminating tariffs on <strong>99% of Indian exports<\/strong>.<\/li>\n<li><strong>Extreme weather in the UK<\/strong> has been linked to more than <strong>2,700 deaths<\/strong> during recent heatwaves, with scientific analysis attributing over <strong>40% of these fatalities<\/strong> to human-induced climate change.<\/li>\n<\/ul>\n<h2>Middle East Conflict Escalates Market Volatility<\/h2>\n<p>Tensions between the United States and Iran reached a new flashpoint on Monday following reports of <strong>ballistic missile launches<\/strong> from Iran&#39;s Markazi Province. At least <strong>12 missiles<\/strong> reportedly targeted the <strong>Muwaffaq Salti Airbase<\/strong> in Jordan, a key hub for U.S. military operations. While initial reports from Amman suggest successful interceptions and no immediate impact on facilities, the barrage follows a series of <strong>U.S. strikes<\/strong> on Sunday intended to protect civilian shipping in the <strong>Strait of Hormuz<\/strong>.<\/p>\n<p>The maritime chokepoint remains a primary concern for energy markets, as <strong>Crude Oil prices<\/strong> rose following the exchange of strikes. Analysts warn that the continued closure of the Strait to commercial traffic is fueling a global energy crisis, with <strong>Brent Crude<\/strong> maintaining levels well above previous averages. The <strong>U.S. Central Command (CENTCOM)<\/strong> stated that its operations are designed to limit Iran&#39;s ability to attack vessels, but the tit-for-tat strikes have instead heightened fears of a systemic supply disruption.<\/p>\n<h2>Asian Equities and Currencies Under Pressure<\/h2>\n<p>The <strong>KOSPI (<a href=\"\/stock\/%5EKS11\">^KS11<\/a>)<\/strong> faced heavy selling, plunging <strong>3%<\/strong> as South Korean equities bore the brunt of geopolitical uncertainty. Semiconductor giants like <strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong> saw significant volatility; despite a record-breaking <strong>$26.5 billion Nasdaq ADR debut<\/strong>, its local shares fell as much as <strong>4.4%<\/strong> in Seoul. <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> managed to buck the trend with marginal gains, but the broader market sentiment remains fragile as the <strong>Strait of Hormuz<\/strong> blockade threatens critical tech supply routes.<\/p>\n<p>In the currency markets, the <strong>People\u2019s Bank of China (PBOC)<\/strong> fixed the <strong>Yuan midpoint lower at 6.7972<\/strong> against the dollar. This move reflects a cautious stance by Beijing as it navigates the inflationary shocks of the Middle East conflict. Asian currencies generally weakened against a strengthening U.S. Dollar, which continues to benefit from its status as a safe haven and the prospect of sustained high interest rates from the <strong>Federal Reserve<\/strong>.<\/p>\n<h2>Commodity Trends and Economic Data<\/h2>\n<p><strong>Gold (<a href=\"\/stock\/XAUUSD\">XAU\/USD<\/a>)<\/strong> continued its retreat, trading near <strong>$4,070<\/strong> as the &quot;inflation channel&quot; dominates safe-haven dynamics. While geopolitical crises typically support bullion, the current conflict-driven rise in energy costs has revived <strong>Fed rate hike expectations<\/strong>, making the non-yielding metal less attractive. Investors are now pivoting their focus to the upcoming <strong>U.S. Consumer Price Index (CPI)<\/strong> data, which will provide further clarity on the inflation outlook.<\/p>\n<p>Domestically, the <strong>Wall Street Journal<\/strong> reported that nearly <strong>half of young adults (49%)<\/strong> in the U.S. under the age of 30 are still living at home. This data highlights the persistent pressure of high housing costs and inflation on the younger demographic. Meanwhile, in the technology sector, <strong>Malaysia<\/strong> is set to begin initial production of its first <strong>homegrown EV battery<\/strong> this July, marking a significant milestone in the country&#39;s ambition to become a regional hub for the electric vehicle ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Geopolitical escalation in the Middle East has intensified as Iran launched at least 12 ballistic missiles targeting Jordan&#39;s 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