Seoul: South Korean stocks opened at a new record high of over 8,000 Tuesday on rising hopes for a U.S.-Iran deal to reopen the Strait of Hormuz. The benchmark Korea Composite Stock Price Index (KOSPI) rose 223.2 points, or 2.84 percent, to 8,070.91 at the opening bell.

According to Yonhap News Agency, overnight, U.S. President Donald Trump stated that peace negotiations with Iran are proceeding "nicely" but warned of fresh attacks if they fail. This positive outlook on the negotiations has fueled optimism in the market, contributing to the surge in South Korean stocks.

On anticipation of a possible resolution to the conflict, oil prices experienced a significant drop. Brent crude decreased by 7 percent to US$96, while U.S. West Texas Intermediate futures declined by 6.5 percent to $90. These declines in oil prices further bolstered investor confidence and played a role in the stock market's surge.

The South Korean stock market had been closed on Monday in observance of the Buddha's Birthday holiday, adding to the anticipation for the market's opening on Tuesday.