U.S. Stocks Fall on Potential U.S. Involvement in Israel-Iran Conflict…Heatwave Continues [Morning Briefing]

◆ U.S. Stocks Decline Amid Concerns of U.S. Involvement in Israel-Iran Conflict

The three major U.S. stock indices closed lower on the 17th local time. As the Israel-Iran conflict entered its fifth day and President Donald Trump took a hardline stance against Iran, tensions surged, leading to weakened investor sentiment. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 42,215.80, down 299.29 points (-0.70%) from the previous session. The S&P 500 fell 50.39 points (-0.84%) to 5,982.72, while the tech-heavy NASDAQ Composite lost 180.12 points (-0.91%), ending at 19,521.09.

◆ U.S. Weighs Military Response as Trump Demands 'Unconditional Surrender' from Iran

The Trump administration hinted that it might consider an operation to remove Iran's supreme leader in the future, calling for Iran's 'unconditional surrender.' President Trump warned in a post on the social networking service (SNS) Truth Social, "We know exactly where Iran's so-called 'supreme leader' is hiding. We don't want Iran firing missiles at civilians or U.S. soldiers. Our patience is running thin." In another SNS post, he urged Iran to surrender, saying, "UNCONDITIONAL SURRENDER!" President Trump shortened his schedule for the G7 summit in Canada and returned to the White House, where he discussed whether the U.S. would directly intervene in the conflict during a National Security Council (NSC) meeting.

◆ International Oil Prices Surge Amid Rising Middle East Geopolitical Risk

International oil prices soared by more than 4% as the Israel-Iran conflict escalated. On the New York Mercantile Exchange, July West Texas Intermediate (WTI) crude futures jumped $3.07 (4.28%) to close at $74.84 per barrel. August Brent Crude, the global benchmark, rose $3.22 (4.4%) to end at $76.54 per barrel. The heightened geopolitical risk in the Middle East due to the ongoing military clashes between Israel and Iran caused these sharp increases.

◆ President Lee Steps Up Diplomatic Efforts on Second Day of G7 Summit, Meets with U.N. Secretary-General

President Lee Jae-myung, attending the G7 summit in Canada, held a brief meeting with António Guterres, Secretary-General of the United Nations, in Kananaskis, Alberta, on the 17th. When President Lee cited Korea's resilience in restoring democracy, including martial law and impeachment events, Secretary-General Guterres suggested during the meeting that President Lee share these experiences at the U.N. General Assembly in September, according to spokesperson Kang Yoo-jung. On the second day of the G7 summit, President Lee continued diplomatic engagements, holding bilateral meetings with the leaders of Brazil, Mexico, India, the United Kingdom, and the European Union (EU).

◆ U.S. 'Deeply Concerned' by North Korea's Additional Troop Deployment to Support Russia—Calls It a Violation of U.N. Sanctions

The U.S. State Department expressed deep concern, as reported by Yonhap News, after North Korea decided to deploy an additional 6,000 engineering and military construction personnel to support Russia's war effort in Ukraine. A State Department spokesperson told Yonhap, "We are deeply concerned about Russia's continued use of North Korean laborers and soldiers to support its military operations against Ukraine. Similarly, the North Korean regime continues to rely on Russia for desperately needed funds in exchange for lending labor and soldiers." Earlier, Sergei Shoigu, Secretary of the Russian Security Council, told Russian media after meeting with Kim Jong-un in Pyongyang that North Korea would send more personnel to help clear mines in Russian territory and rebuild infrastructure damaged by Ukrainian attacks.

◆ Total Economic Contribution of Top 100 Domestic Companies Exceeds 1,615 Trillion Won; Samsung Electronics Ranks First

Last year, the total economic contribution of Korea's top 100 companies surpassed 1,615 trillion won. According to business data research institute CEO Score, among the top 500 companies, the top 100 by revenue that submitted business reports (excluding state-run and financial firms) were analyzed for last year’s economic contribution. The result showed a total of 1,615.1783 trillion won, a 3.9% increase from the previous year (1,554.9360 trillion won). Economic contribution refers to the total economic value created by a company’s business activities—the sum of costs paid to stakeholders including partners (transaction payments), employees (salaries, etc.), government (taxes, etc.), shareholders (dividends, etc.), creditors (interest), and society (donations). Samsung Electronics' economic contribution was approximately 158 trillion won, ranking first for the second consecutive year.

◆ 'High of 33°C at Noon'—Heatwave Continues; Clear Skies and Morning Fog in Some Areas Nationwide

On Wednesday the 18th, most regions are expected to be mostly clear, with inland areas experiencing daytime highs around 30°C, continuing the heatwave. Daytime highs will range from 26 to 33°C, which is similar to or slightly higher than usual. Temperatures in the interior will reach nearly 30°C, with perceived highs exceeding 31°C in many areas. Fine dust concentration is expected to be at 'good' to 'moderate' levels nationwide. In the morning, some coastal areas of the West and South Sea, southeast Gyeongsang region, Gangwon inland and mountainous areas may see thick fog with visibility under 200m, and some areas may have light drizzle.

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