Seoul: The South Korean won opened lower against the U.S. dollar Tuesday, reaching its weakest level in 17 years, as the escalating Middle East conflict fueled fears of further disruptions to global oil supplies and broader economic impacts. The currency opened at 1,519.9 per dollar, down 4.2 won from the previous session, continuing its downward trend.

According to Yonhap News Agency, this marks the lowest level since March 10, 2009, when the won fell to 1,561 per dollar during the global financial crisis. The won has hovered around the 1,500 mark in recent sessions and dropped to as low as 1,517.3 on a closing basis last week, as the conflict, which began in late February following U.S.-Israeli strikes on Iran, shows no sign of resolution.

On Monday (U.S. time), U.S. President Donald Trump threatened to "completely obliterate" Kharg Island, a crucial oil hub, along with Iran's power plants and oil facilities if a peace deal with Washington is not reached "shortly." Tehran, however, rejected the peace proposals as "unrealistic, illogical and excessive," while a parliamentary security committee approved a draft bill to introduce a toll system for the Strait of Hormuz, as reported by foreign media.

The escalating conflict has led to a rise in global oil prices. U.S. West Texas Intermediate (WTI) crude futures for May delivery increased by 3.25 percent to $102.88 per barrel, exceeding the $100 mark on a closing basis for the first time since July 2022. The benchmark Korea Composite Stock Price Index (KOSPI) opened nearly 3 percent lower Tuesday amid significant selling by offshore investors.