Iran-Hormuz Tensions Push Brent to 6-Month High, KOSPI Hits All-Time 5,677

Investment Implications

Iran-Hormuz Tensions Reignite, Exposing Korea's Energy Vulnerability

Iran partially closed the Strait of Hormuz while the US deployed two aircraft carriers to the region, pushing Brent crude to a 6-month high of $71.50. South Korea imports 72% of its crude oil from the Middle East — a structural vulnerability that turns every Hormuz flare-up into a direct energy cost risk.

Iran partially closed the Strait of Hormuz on February 17, 2026, citing "security precautions." The US responded by deploying two aircraft carriers (including USS Abraham Lincoln) and 13 warships to the Middle East. Both sides reached agreement on "basic principles" at the Geneva nuclear talks on February 18, but Iran is simultaneously fortifying airstrike-damaged military sites with concrete bunkers — pursuing negotiation and military buildup in parallel. Brent crude ($71.50) and WTI ($66.37) surged to 6-month highs in response.

Given active trends, South Korea remains heavily dependent on Middle Eastern crude — 72% of total imports. As US shale energy independence structurally weakens Washington's commitment to Middle East security, Korea sits among the most exposed allies to energy supply shocks. For investors, the supply chain diversification strategies of domestic refining and LNG infrastructure companies — and potential beneficiaries of energy import restructuring — merit close attention.

Key Developments

Technology

India Enters $200B+ AI Infrastructure Investment Era Over Two Years

Reliance Industries (Mukesh Ambani) announced an $110B (INR 10T) investment plan for India's AI computing infrastructure over seven years. The company broke ground on a gigawatt-scale AI data center in Jamnagar, Gujarat, targeting 120MW capacity by H2 2026. The Indian government projects total AI investment exceeding $200B over two years, including commitments from Reliance, Adani, and OpenAI-Tata. (Source: TechCrunch)

India's Weekly ChatGPT Users Top 100M (Sam Altman Estimate)

OpenAI CEO Sam Altman, visiting India, revealed that ChatGPT's weekly active users in India exceed 100 million — spanning students, teachers, developers, and entrepreneurs. (Source: TechCrunch)

Global AI Spending Projected at $2.5T in 2026, Infrastructure Over Half

Gartner projects global AI spending at $2.5T in 2026 (YoY +44%), with AI infrastructure at $1.37T — the largest share. Cumulative private AI investment from 2013-2024 reached $1.6T, a 13x increase over the decade. (Source: Al Jazeera)

Naver Pay Hits KRW 86T ($59.2B) in Annual Transaction Volume for 2025

Naver Pay, South Korea's dominant digital payment platform, recorded KRW 86T (approximately $59.2B) in annual transaction volume for 2025. (Source: Yonhap News)

Quantum Computing Threat to Current Encryption Becomes Tangible

A UBS report warns that sufficiently powerful quantum computers could break current encryption methods, urging companies to begin investing in quantum-resistant cryptography within years. Quantum-sector M&A has surged over the past three months. (Source: CNBC)

Economy

South Korea's KOSPI Hits All-Time High of 5,677.25, Led by Semiconductors and AI

South Korea's benchmark KOSPI index reached an all-time high of 5,677.25 on February 19, 2026 (+170.24pt, +3.09% day-over-day). Semiconductor and big tech stocks led the rally amid AI optimism, surpassing the previous record of 5,522.27 set on February 12, 2026. (Source: Yonhap News)

Brent Crude Hits $71.50, 6-Month High on Iran-Russia Supply Disruption Fears

Brent crude topped $71.50, reaching a 6-month high, while WTI hit $66.37. Iran-Russia supply disruption concerns and declining US crude inventories were the combined drivers. (Source: OilPrice)

Korea's January Auto Exports Hit 2nd-Highest Ever, Hybrids Surge 85.5%

South Korea's auto exports reached $6.07B in January 2026 (YoY +21.7%), the second-highest January on record. Hybrid vehicle exports surged 85.5% to $1.71B, while EV exports grew to $780M (+21.2%). (Source: Yonhap News)

Big Oil Supermajors Pivot from 'Low-Carbon' Strategy Back to Crude Production Growth

Shell, BP, and Equinor are shifting from low-carbon and shareholder return strategies toward expanding crude reserves and production growth. The IEA also withdrew its November 2025 projection of peak oil demand before 2030. (Source: OilPrice)

Three Vietnamese Airlines Sign 96-Aircraft Boeing Deal Worth ~$31.4B

Three Vietnamese airlines signed contracts for 96 Boeing aircraft during a US visit. Vietnam Airlines ordered 50 737 MAX jets ($8B), Sun Phu Quoc Airlines ordered 40 787 Dreamliners ($22.5B — Vietnam's largest-ever widebody order), and VietJet ordered 6 737s ($965M). Total contract value reached approximately $31.4B. (Source: CNBC)

Politics

Former South Korean President Yoon Suk-yeol Convicted of Insurrection, Sentenced to Life

The Seoul Central District Court convicted former President Yoon Suk-yeol of leading an insurrection through his 2024 martial law declaration, sentencing him to life in prison on February 19, 2026. (Source: Yonhap News)

Iran Partially Closes Strait of Hormuz, US-Iran Nuclear Talks Continue

Iran partially closed the Strait of Hormuz on February 17, 2026, citing "security precautions." The US and Iran reached agreement on "basic guiding principles" at their second Geneva nuclear talks on February 18, with Iran set to submit detailed proposals within two weeks. (Source: CNBC)

US Deploys 2 Aircraft Carriers and 13 Warships to Middle East

The US deployed 13 warships including the USS Abraham Lincoln to the Middle East. President Trump ordered a second carrier deployed, spotted approximately 700km off Iran's coast. (Source: South China Morning Post)

Hanwha Ocean Shortlisted for Canada's ~$41.3B Submarine Program

Canada's submarine program (CPSP, up to 12 vessels at 3,000 tons, approximately $41.3B) has been narrowed to two finalists: Hanwha Ocean (South Korea) consortium and TKMS (Germany). Hanwha Ocean signed a design and technology transfer MOU with an Ontario shipyard and a workforce training center LOI with Mohawk College. Final proposals are due in March 2026. (Source: Yonhap News)

China Grants Full Tariff-Free Access to 53 African Countries Starting May

China will implement a zero-tariff policy for 53 African countries starting May 1, 2026. Xi Jinping declared no reciprocity requirement, positioning the move against the backdrop of US 30% tariffs on South Africa to expand Africa's market orientation toward China. (Source: South China Morning Post)