Seoul: South Korean stocks opened by more than 1.5 percent higher Tuesday, tracking overnight gains on Wall Street after the United States and Iran reached an agreement to reopen the Strait of Hormuz, boosting investor sentiment. The benchmark Korea Composite Stock Price Index (KOSPI) opened up 150.57 points, or 1.76 percent, to 8,696.55.

According to Yonhap News Agency, U.S. stocks rallied after U.S. President Donald Trump announced that a preliminary agreement to end the conflict with Iran had been signed. This agreement includes the complete reopening of the Strait of Hormuz by Friday. The news contributed to significant gains in major U.S. stock indexes, with the S and P 500 rising 1.7 percent, the tech-heavy Nasdaq 100 gaining 3.1 percent, and the Dow Jones Industrial Average reaching a record high.

The agreement also impacted oil prices, which retreated as a result. Brent crude fell 4.76 percent to $83.17 per barrel, while U.S. West Texas Intermediate (WTI) dropped 4.87 percent to $80.75 per barrel. The decrease in oil prices helped ease concerns over inflation, contributing to the positive market sentiment.