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Korean won falls against dollar amid rising oil prices as Middle East crisis drags on

Published: 12 Mar. 2026, 12:34

Smoke rises after an explosion at the airport in Irbil, Iraq, on March 11. [AP/YONHAP]

The Korean currency fell against the U.S. dollar Thursday as global oil prices climbed amid concerns about supply disruptions stemming from heightened tensions in the Middle East.

The won opened at 1,480.1 per dollar, down 13.6 won from the previous session.

The currency had risen over the previous two sessions, rebounding from a 17-year low, after U.S. President Donald Trump hinted that the war in the Middle East could end soon and global oil prices showed signs of stabilizing.

But the won weakened again in line with rising global oil prices as Iran effectively halted cargo traffic through the Strait of Hormuz. Iran fired on commercial ships and targeted Dubai International Airport, stepping up efforts to disrupt traffic in the oil-rich Persian Gulf.

The surge in oil prices came despite the International Energy Agency's decision to release its largest-ever oil stockpile of 400 million barrels to mitigate supply disruptions.

The United States also said it plans to release 172 million barrels from its Strategic Petroleum Reserve starting next week.

The foreign exchange and stock markets have shown high volatility since last week as the U.S.-Israeli attacks on Iran have escalated tensions across the broader region.

Higher oil prices put downward pressure on the Korean won as they increase the country's demand for dollars to pay for crude imports. Korea depends heavily on energy imports.

The Kospi opened 0.75 percent lower at 5,567.65 on Thursday, tracking overnight losses on Wall Street amid concerns about a prolonged war.

Yonhap