New York stocks fall, oil rises… Trump: “Iran gave us a ‘gift’ related to oil and gas” [Morning Briefing]

◆ New York stocks close lower as Iran war talks shift by the minute

The three major New York stock indexes closed lower on the 24th local time. Investor sentiment weakened as doubts grew over U.S. President Donald Trump’s remarks that the United States and Iran were discussing terms to end the war. Amid ongoing exchanges of fire among countries in the Middle East, reports also emerged that Iran is demanding up to $2 million (about 2.9 billion won) as a transit toll for passage through the Strait of Hormuz. Tensions also spread as it became known that the United States is planning to deploy airborne troops to Iran. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,124.06, down 84.41 points (0.18%) from the previous session. The Standard & Poor’s (S&P) 500 fell 24.63 points (0.37%) to 6,556.37. The Nasdaq Composite ended the day at 21,761.89, down 184.87 points (0.84%).

◆ Trump: “Iran gave us a gift… related to oil and gas”

U.S. President Donald Trump said he had received a “very big gift” from Iran, which is at war with the U.S. and Israel. Speaking to reporters at the White House during the swearing-in ceremony of new Secretary of Homeland Security Markwayne Mullin, Trump said, “In fact, they gave us a gift. That gift arrived today.” He added, “It was a very big gift worth a tremendous amount of money. I’m not going to tell you what the gift is.” Asked what the “gift” referred to, Trump replied, “It wasn’t related to nuclear. It was related to oil and gas.”

◆ International oil rebounds as optimism on Middle East talks fades

International oil prices rebounded as doubts grew about progress in negotiations between the United States and Iran. Brent crude climbed back above $100 a barrel. On the day, Brent crude futures for May delivery settled at $104.49 a barrel, up 4.6% from the previous session. U.S. West Texas Intermediate (WTI) futures for May delivery settled at $92.35 a barrel, up 4.8%. After Iran denied that it was holding talks with the United States, concerns mounted that negotiations would not go smoothly, sending oil prices back into rebound mode just one day after a sharp drop.

◆ “Saudi crown prince urged Trump to ‘keep the war going… topple the Iranian regime’”

Saudi Arabia’s de facto leader, Crown Prince Mohammed bin Salman, has recently urged U.S. President Donald Trump to continue the war with Iran, The New York Times (NYT) reported. Citing multiple sources, the NYT said that in conversations with Trump over the past week, bin Salman stressed that Iran’s hardline regime should be removed. The crown prince is reportedly viewing U.S. and Israeli military operations as a “historic opportunity” to reshape the Middle East. Sources said he argued to Trump that ending the war would be a mistake and urged strikes on Iranian energy facilities to weaken the Iranian government.

◆ “U.S. seeks talks on a 1-month ceasefire and 15 demands with Iran”… outcome uncertain

The NYT reported that the Trump administration has drawn up a plan to implement a one-month ceasefire with Iran and discuss 15 demands, and that it sent those demands to Iran. Citing two officials briefed on the matter, the NYT said the plan was delivered to Iran via Pakistan. However, it remains unclear whether Iran will accept it. Israel’s Channel 12 also reported, citing three sources, that Trump’s son-in-law Jared Kushner and Middle East envoy Steve Witkoff have already prepared an outline agreement with Iran and are awaiting Trump’s approval. According to Channel 12, the proposal calls for declaring a one-month ceasefire and for the United States and Iran to discuss 15 demands, including a pledge not to possess nuclear weapons.

◆ Era of 100 million won average pay at conglomerates… top executives’ compensation rising faster

A survey found that the average annual pay of employees at major domestic conglomerates has surpassed 100 million won for the first time. However, the gap between the highest-paid individuals and the average employee salary was found to have widened. According to an analysis by corporate research firm Leaders Index of 211 comparable companies among the top 500 firms by sales, the real average annual pay of employees last year was 102.8 million won, up 5.2% from the previous year. By contrast, average compensation for the highest-paid individuals rose 7.6% to 2.18 billion won, widening the pay gap from 20.7 times to 21.2 times.

◆ Kim Keon-hee’s second trial begins… lawmaker Choo Kyung-ho also faces trial over “obstructing vote to lift martial law”

The appeal trial of first lady Kim Keon-hee, who was sentenced in the first trial to 1 year and 8 months in prison on charges including receiving money and valuables from the Unification Church, begins today. The Seoul High Court’s Criminal Division 15-2 (Judges Shin Jong-oh, Sung Eon-ju, and Won Ik-seon) will hold the first hearing in the appeal case on charges including brokerage bribery under the Act on the Aggravated Punishment of Specific Crimes, as well as violations of the Capital Markets Act and the Political Funds Act. At the first hearing, the special counsel team under Prosecutor Min Joong-ki and Kim’s side will each present their reasons for appeal, after which procedures to approve amendments to the indictment by the special counsel will proceed in sequence. The first hearing for People Power Party lawmaker Choo Kyung-ho, indicted on charges of participating in an insurrection in a key role, will also be held the same day at the Seoul Central District Court’s Criminal Agreement Division 34 (Presiding Judge Han Sung-jin).

◆ Beware daily temperature swings of 15°C or more… rain in the south and Jeju until daytime

Wednesday the 25th will bring mild weather, with daytime temperatures rising to around 20°C. Morning temperatures will be around 0°C mainly in inland and mountainous Gangwon, while daytime temperatures will climb to around 20°C mainly in inland central regions and inland North Gyeongsang, resulting in a large day-night gap of 15–20°C. Daytime highs are forecast at 13–21°C. The capital region and Gangwon Province will be mostly clear, while the rest of the country will be mostly cloudy before gradually clearing from the morning. Rain is expected until daytime in South Jeolla, southern North Jeolla, the southern coast of South Gyeongsang, and Jeju Island, and also in other parts of South Gyeongsang from morning to daytime. In northern North Jeolla and the southern Chungcheong region, and in southern North Gyeongsang until daytime, some areas may see less than 0.1mm of drizzle. Expected precipitation is less than 5mm in Gwangju, South Jeolla, southern North Jeolla, Busan, Ulsan, and South Gyeongsang, and 5–10mm in Jeju Island.

Oh Jung-min, Hankyung.com reporter blooming@hankyung.com