Seoul: The South Korean won decreased in value against the U.S. dollar on Thursday amid ongoing discussions between the United States and Iran over a two-week ceasefire agreement in their ongoing conflict.

According to Yonhap News Agency, the won closed at 1,482.5 per dollar, marking a decrease of 11.9 won from the previous trading session. The local currency had previously surged to a one-month high on Wednesday after U.S. President Donald Trump announced an agreement to refrain from attacking Iran for two weeks, contingent upon Iran reopening the Strait of Hormuz.

In exchange, Tehran agreed to reopen the vital waterway, provided that military actions against Iran cease. However, tensions remain high as Israel has declared its intention to continue its offensive against Lebanon, claiming it is not bound by the ceasefire, leading to further uncertainty in the region.

In response, Iran has issued a warning that it might again close the Strait of Hormuz if Israeli attacks on Lebanon persist, adding to the volatility in the Middle East. The United States and Iran are expected to convene over the weekend to formalize the ceasefire terms.

The conflict, which escalated in late February following U.S.-Israeli military actions on Iran, has developed into a wider regional confrontation, affecting global markets and increasing oil prices due to the effective closure of the Strait of Hormuz.

Amid the ongoing uncertainty regarding the U.S.-Iran ceasefire, South Korea's benchmark index, the KOSPI, saw a decrease of 94.33 points, or 1.61 percent, concluding at 5,778.01.