S. Korea stocks rally as US-Iran ceasefire deadline looms

South Korean stocks rebounded sharply on Tuesday as the deadline for a fragile two-week ceasefire between the United States and Iran drew near, with the benchmark Kospi opening 1.34 percent higher at 6,302.54. President Donald Trump has warned the ceasefire will expire on Wednesday evening Washington time and indicated it would be highly unlikely he would extend it if no agreement is reached, while Iran has dismissed the prospect of negotiations, with Parliamentary Speaker Mohammad Bagher Ghalibaf stating the country does not accept talks under the shadow of threats and has prepared to reveal new cards on the battlefield. Oil prices declined during Asian trading hours as uncertainty mounted over peace talks, with West Texas Intermediate futures sliding 1.51 percent to $88.26 per barrel and Brent crude dropping 0.68 percent to $94.87, after surging on Monday as traffic through the Strait of Hormuz remained largely paralyzed. The tensions escalated after U.S. forces seized an Iranian cargo ship on Sunday, prompting vows of retaliation from Tehran, though reports emerged that Iran may still send delegates to talks expected in Islamabad, with Vice President JD Vance reportedly slated to lead the U.S. delegation despite remaining in the United States on Monday. Meanwhile, Kevin Warsh's confirmation hearing as Federal Reserve chair nominee was scheduled for Tuesday, with analysts monitoring his commitment to central bank independence amid Trump's repeated criticism of the Fed. Asian markets broadly rallied on reports Iran is considering attending peace talks, with MSCI's Asia-Pacific index up 0.9 percent and Japan's Nikkei 225 gaining 1.2 percent, while the Kospi hit a fresh record high for the first time since the Iran conflict began. Energy research firm Rystad Energy warned that if oil prices push through and sustain $100 per barrel, it could unlock as much as 2.1 million barrels per day of new supply from South America, positioning the region as the world's most consequential source of incremental supply. The broader uncertainty continued to weigh on Wall Street overnight, where the S&P 500 fell 0.24 percent and the tech-heavy Nasdaq snapped a 13-day winning streak, its longest in more than three decades.