Seoul: South Korean stocks opened 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) rose 149.68 points, or 1.75 percent, to 8,695.66, as of 9:25 a.m.

According to Yonhap News Agency, U.S. stocks rallied overnight after U.S. President Donald Trump announced a preliminary agreement to end the conflict with Iran, stating that the Strait of Hormuz would be "completely opened" by Friday. This announcement had a positive impact on the markets, 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.

Oil prices also retreated following the news. Brent crude fell 4.76 percent to $83.17 per barrel, while U.S. WTI dropped 4.87 percent to $80.75 per barrel, easing concerns over inflation. In Seoul, shares were mixed with market top-cap Samsung Electronics gaining 1.39 percent, and its chipmaking rival SK hynix increasing by 3.63 percent.

Defense firm Hanhwa Aerospace saw a notable increase, jumping 8.3 percent, while KB Financial rose 4.78 percent. However, Samsung Electro-Mechanics experienced a slight decline of 0.9 percent, and leading automaker Hyundai Motor fell by 1.08 percent. The local currency was trading at 1,517.75 won against the U.S. dollar, down 5.65 won from the previous session, as of 9:15 a.m.