Seoul: Seoul stocks surged over 2 percent on Tuesday, marking a fourth consecutive day of gains as optimism grew over a potential U.S.-Iran agreement to resolve the ongoing conflict and reopen the crucial Strait of Hormuz. The local currency, however, experienced a decline against the U.S. dollar.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) increased by 180.62 points, or 2.11 percent, closing at 8,726.6. This boost in the stock market was mirrored by developments in the United States, where stocks rallied after President Donald Trump announced that a preliminary agreement with Iran had been signed. The agreement promises to fully reopen the Strait of Hormuz by Friday.

The U.S. market saw significant gains, with the S and P 500 rising 1.7 percent, the Nasdaq 100 climbing 3.1 percent, and the Dow Jones Industrial Average reaching a record high. The positive news regarding the U.S.-Iran deal also led to a retreat in oil prices, with Brent crude falling 4.76 percent to $83.17 per barrel and U.S. WTI dropping 4.87 percent to $80.75 per barrel. This decline in oil prices alleviated concerns over inflationary pressures.