Seoul: South Korean stocks on Wednesday surpassed the 7,000-point threshold for the first time as the market opened, spurred by U.S. President Donald Trump's declaration to halt operations aimed at directing vessels out of the Strait of Hormuz. This move is part of ongoing efforts to finalize a diplomatic deal with Iran.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) opened at a new record high of 7,093.01, marking an increase of 2.25 percent. By 9:15 a.m., KOSPI had surged by 343.09 points, or 4.95 percent, reaching 7,280.08. In response to this significant rise, the bourse operator implemented a buy-side sidecar at 9:06 a.m. to temporarily halt program-driven buy orders in KOSPI futures for five minutes.

The KOSPI's upward momentum has been bolstered by strong gains in stocks related to artificial intelligence (AI), maintaining a record-breaking trajectory for several weeks. The index had previously reached 6,600 last Wednesday and climbed over 5 percent to close above 6,900 on Monday.

President Trump's social media announcement just before the market opened indicated a pause in U.S. efforts to assist stranded vessels in the Strait of Hormuz as a settlement with Iran to end the conflict was being finalized. This announcement also contributed to a rally on Wall Street overnight, with both the S and P 500 and Nasdaq reaching record high closes.

In Seoul, major market players were at the forefront of the rally. Samsung Electronics, a market bellwether, saw a jump of 9.89 percent, while its competitor SK hynix increased by 9.33 percent. Hyundai Motor, a leading carmaker, advanced by 2.97 percent, and LG Electronics rose by 7.47 percent. Additionally, top banking groups KB Financial Group and Shinhan Financial Group saw increases of 1.39 and 0.92 percent, respectively.

The Korean won was trading at 1,462.75 won against the U.S. dollar at 9:15 a.m., marking an appreciation of 0.15 won from the previous session.