Sensex, KOSPI Tumble Amid Escalating US-Iran Military Conflict

Global equity markets, including the Indian Sensex and the South Korean KOSPI, faced a sharp decline on Monday, July 13, 2026, following heightened military tensions between the United States and Iran. Renewed airstrikes and attacks on energy infrastructure in the Strait of Hormuz drove Brent crude prices up by 4% to nearly $79.26 per barrel. The volatility disrupted trading globally, with KOSPI suffering an 8% crash that triggered a market-wide circuit breaker in South Korea, pushing the index into technical bear market territory.

The BSE Sensex fell over 600 points in early trade, reflecting broader regional anxiety regarding inflation and potential interest rate hikes by central banks. South Korea’s tech sector bore the brunt of the downturn, with major semiconductor firms like SK Hynix and Samsung Electronics experiencing significant losses. Market analysts attribute the tech-specific sell-off to a broader re-evaluation of AI-related investment sustainability, exacerbated by the prospect of the Bank of Korea increasing its base rate to 2.75% this week.

The escalation threatens to break the interim ceasefire previously established to stabilize oil flows through the Strait of Hormuz. For India, the rising crude prices pose a significant risk to the current account and domestic inflation targets, likely tempering the recent equity market rally. Investors remain on high alert for further signals from the US Central Command and central banking authorities as the conflict continues to drive risk-off sentiment across emerging markets.