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Won weakens against dollar as failed U.S.-Iran talks result in Trump order to block Strait of Hormuz

Published: 13 Apr. 2026, 12:49

Bundles of Korean won and U.S. dollars are seen piled up at Hana Bank in central Seoul in April. [YONHAP]

The Korean won weakened markedly against the dollar Monday as U.S. President Donald Trump ordered a blockade of all ships entering or leaving the Strait of Hormuz after high-stakes peace talks with Iran failed to make a breakthrough.

The won weakened by 12.9 won from the previous session's close, trading at 1,495.4 to the dollar.

The decline came after the United States and Iran concluded marathon talks in Islamabad Saturday without reaching an agreement. The meeting was the first since a two-week cease-fire was reached last week.

Following the breakdown in talks, Trump said the U.S. military would enforce a blockade on all vessels attempting to enter or exit the crucial waterway starting Monday, pushing global oil prices higher amid concerns over further supply disruptions.

The local currency has shown heightened volatility in recent sessions, in line with developments in the Iran war that began in late February, as rising oil prices have fueled concerns over inflation and a potential economic slowdown.

Higher oil prices have pressured the won by increasing demand for dollars for crude imports, as Korea relies heavily on imports for energy.

The dollar index, which measures the value of the U.S. dollar against a basket of six major currencies, rose 0.4 percent to 99.04.

Amid heightened tensions, the Kospi fell 0.66 percent to 5,820.13 as of 10 a.m. Monday, weighed down by heavy foreign selling.

Yonhap