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Seoul shares again plummeted Thursday, led by steep losses in technology heavyweights, as escalating tensions in the Middle East weighed on investor sentiment. The Korean won rose against the U.S. dollar.

After opening 4.45 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses to close at 6,820.60, down 463.81 points, or 6.37 percent from the previous session, after falling as low as 6,730.87.

The Korea Exchange, the country’s bourse operator, activated a sell-side sidecar on the KOSPI for 20 minutes at around 9:10 a.m. after the benchmark index fell more than 5 percent.

The decline came after the index surged 6.24 percent Wednesday as softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest rate hikes.

Adding to investor jitters, the Bank of Korea (BOK) raised its benchmark interest rate by a quarter percentage point to 2.75 percent earlier in the day, the first increase in 3 1/2 years, to curb inflation amid escalating tensions in the Middle East.

The U.S. launched fresh strikes on Iran, escalating tensions in the Middle East and renewing concerns over potential disruptions to regional energy supplies.

“Profit-taking followed sharp gains in technology stocks a session earlier, while persistent concerns over the semiconductor industry kept the index under pressure,” Kang Jin-hyeok, an analyst at Shinhan Securities Co., said.

Institutional and foreign investors sold a net 2.37 trillion won (US$1.6 billion) and 1.38 trillion won worth of shares, respectively, while retail investors bought a net 3.66 trillion won.

Technology stocks led the decline.

Market bellwether Samsung Electronics plunged 8.77 percent to 255,000 won, while rival chipmaker SK hynix tumbled 11.53 percent to 1,842,000 won.

Top automaker Hyundai Motor fell 2.07 percent to 425,000 won, while steelmaker POSCO Holdings slipped 0.95 percent to 311,500 won.

Among gainers, shipbuilder Hanwha Ocean rose 5.73 percent to 86,700 won, while leading beverage firm Hitejinro gained 2.47 percent to 14,910 won.

The Korean won was quoted at 1,480.4 won against the U.S. dollar at 3:30 p.m., up from 1,484.7 won the previous session.

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United States President Donald Trump has taken to social media to boast about the state of the economy amid a looming peace deal between the US and Iran, which yesterday signed a memorandum of understanding (MoU) to end the US-Israel war on Iran.

In a post on his social media platform Truth Social, the president claimed that “OIL IS FLOWING” and added that “THE STOCK MARKETS ARE ROARING, JOBS ARE AT RECORDS, AND PRICES ARE DROPPING (AFFORDABILITY!)”

While some of his claims are accurate, others are misleading. Al Jazeera takes a look:

‘Stock Market Just Hit A RECORD High’

That is true specifically for the Dow Jones Industrial Average. That index hit a record high of 51,999.67 for its close on Tuesday amid the potential of a ceasefire and a rally for the newly listed SpaceX.

The Dow slipped from that high on Wednesday amid the US Federal Reserve’s announcement that it would maintain the benchmark interest rate in the target range of 3.5-3.75 percent, and closed down on Wednesday at 51,494.99. The Dow has since jumped 0.35 percent in midday trading on Thursday at 51,671.

The Nasdaq Composite Index and S&P 500 both slipped.

However, this may not directly impact the 38 percent of Americans who do not invest in the stock market.

“The idea that the stock market is doing well does not reflect people’s experiences. There’s a saying that the stock market is not the economy, and that’s an important thing to keep in mind,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University, told Al Jazeera.

And that lived experience is at the petrol station and at the grocery store.

‘Prices are dropping’

Petrol prices have started to tumble in the last few days. The average price of a gallon of petrol (3.78 litres) on Thursday is at $3.99, according to the American Automobile Association (AAA), which tracks daily gas prices. That’s down from a high of $4.48 in May, but still well above $2.98, where prices were on February 28 when the US and Israel first struck Iran.

Despite the deal, experts believe that a petrol price decline will plateau for general consumers as the US strategic petroleum reserve, which earlier this week reached its lowest level since 1983, is refilled, all while oil extraction and shipping bottlenecks weigh on supply chains.

“The persistence of the price spikes is the key issue. Transportation, rerouting, insurance premiums, and manufacturing costs don’t normalise overnight, so even when oil stabilises, the cost base across the supply chain will stay elevated,” Tammy Kulesa, director of product marketing for supply chain execution at Blue Yonder, a supply chain management firm, said in remarks provided to Al Jazeera.

Mark Jones, professor of political science at Rice University in Houston, Texas, says prices will not return to prewar levels until the last quarter or close of 2027.

“Even once everybody believes the truce is going to hold [and] there’s no danger going through the Strait of Hormuz, those tankers take months to reach their final destination and come back,” Jones told Al Jazeera. “So the ability to replenish the stocks is going to take until, I think, the early fall [third quarter].”

Consumer inflation, which has jumped at the fastest pace in three years and is at 4.2 percent, has driven prices up on several key goods and has weighed on consumers. While energy prices have risen by nearly eight percent in the last two months alone, prices at the supermarket have jumped by 0.1 percent in May from the month prior after a 0.7 percent increase in April, with the highest increases in goods like bakery products, cereals, nonalcoholic beverages, as well as fruit and vegetables.

“There are real problems facing a lot of people. Prices are high, and wages have not kept up with prices. So people’s real purchasing power has fallen,” Klein said.

Supermarket chains have taken notice. Kroger, the largest supermarket chain in the US, said on Thursday that it will cut prices on thousands of products within its roughly 3,000 stores nationwide. This comes amid increased pressure from Costco and Walmart for value shoppers.

“Customers are being more deliberate with their spending and at times, shopping us selectively. We’re getting too many promotional trips and not enough of the full basket,” Kroger CEO Greg Foran said in a statement.

‘Jobs are at records’

Jobs are not at record levels, despite Trump’s assertions.

The US economy added 172,000 jobs in May. The highest during the second Trump term was 214,000, in March. By comparison, on average, 300,000 jobs were added monthly under his predecessor, former US President Joe Biden, a Democrat, with some months much higher – including July 2021, when the economy added 943,000 jobs, albeit that was on the back of the COVID-19 pandemic as businesses rushed to hire after massive layoffs.

Under Trump, there have been several months of limited job growth that have been hyper-focused on specific sectors like healthcare. On average, employers added only 15,000 jobs a month in 2025. Meanwhile, the US economy lost 92,000 jobs this year in February.

Layoffs are also on the upswing. Job cuts jumped 16 percent between April and May, marking the most layoffs since May 2020 during the height of the pandemic, according to Challenger, Gray and Christmas, with artificial intelligence (AI) as a driving force behind the cuts. Slightly more than 97,000 people lost their jobs in May.

‘Oil is flowing’

Overnight, 12.5 million barrels of crude oil travelled through the Strait of Hormuz, through which roughly a fifth of the world’s oil is normally shipped, according to US Vice President JD Vance. However, data from Kpler shows that travel through the strait is still low, with six verified crossings on June 17.

With the strait starting to open, oil prices tumbled to their lowest levels since the early days of the war as the temporary deal to end fighting and pull back sanctions elevated pressure on global supply.

Brent crude futures LCOc1 dropped $0.78 or one percent to $76.51 in midday trading.

Shipments of liquefied natural gas (LNG) have also ramped up, and a QatarEnergy LNG vessel has returned to Ras Laffan, where it has loaded more than 209,000 cubic metres, according to Kplr.

WASHINGTON — Republican senators are considering dropping a proposal for $1 billion in security money for the White House complex and President Trump’s ballroom after it has failed to win enough party support on Capitol Hill.

Pressured by the White House, Republicans have tried to add the money to a roughly $70-billion bill to restore funding to U.S. Immigration and Customs Enforcement and the Border Patrol. But the security proposal has met with backlash from some GOP lawmakers who are questioning the cost and the lack of detail from the White House and U.S. Secret Service about how the taxpayer dollars would be used.

Sen. John Kennedy (R-La.) said Wednesday that the bill was “back to square one” without the security money because “the votes are not there.”

Sen. Thom Tillis (R-N.C.) said the effort to add the security package to the bill was a “bad idea” and he does not think there is enough backing to pass it, even if it were reduced.

The text of the bill has not yet been released. But Senate Majority Leader John Thune (R-S.D.) acknowledged “ongoing vote issues” as leaders try to measure Republican support, as well as “ongoing parliamentarian issues” as they try to figure out what will be allowed in the bill under the chamber’s rules.

The wrangling comes as Democrats have criticized Republicans for trying to fund Trump’s ballroom when voters are concerned about basic affordability issues — and as some GOP lawmakers have grown increasingly frustrated with Trump. Several have spoken out against the administration’s $1.8-billion settlement fund designed to compensate Trump’s allies, and many were upset by the president’s endorsement Tuesday of Texas Atty. Gen. Ken Paxton in the party primary runoff next week against Sen. John Cornyn.

“There’s always a consequence with taking on United States senators,” Thune said. Trump “obviously has his favorites and people he wants to endorse and that’s his prerogative. But what we have to deal with up here is moving the agenda, and obviously that can become slightly more complicated.”

Republican opposition blocks Secret Service request

Under the Secret Service request, about $220 million would pay for security improvements related to the ballroom. The rest would go for a new screening center for visitors, training and other security measures.

Tillis said the bill should not have included the other security improvements “because it’s just giving everybody the ‘billion-dollar ballroom.’”

“They need to explain to me why we need this,” Tillis said, noting that Trump had originally said private money would cover the project.

Several other Republicans in the House and Senate have questioned the request, and senators left a briefing with the director of the Secret Service last week saying they needed a lot more information.

People “can’t afford groceries and gasoline and healthcare, and we’re going to do a billion dollars for a ballroom?” asked Louisiana Sen. Bill Cassidy (R-La.), who lost reelection in the GOP primary on Saturday after Trump endorsed one of his opponents.

Sen. Jim Justice (R-W.Va.) said he is supportive of the security money and thinks it is necessary to protect the president. But he acknowledged that the optics are not very good for Republicans, and that they have not communicated about it well.

“We’ve got people out there who are worried about how in the world they’re going to have enough gas to get home,” Justice said.

Tensions rise between Senate and White House

As Republicans challenged parts of his agenda, Trump unloaded on the Senate in a social media post.

He urged Republicans to fire the Senate parliamentarian, Elizabeth MacDonough, who said over the weekend that parts of the $1-billion security proposal cannot remain in the ICE and Border Patrol bill. Trump renewed his long-standing calls for the Senate to pass the SAVE Act, a Republican bill that would require all voters to prove U.S. citizenship, and to end the Senate filibuster.

“Republicans play a very soft game compared to the Dumocrats,” he wrote. “It is their single biggest disadvantage in politics.”

Trump said Democrats would eliminate the filibuster “on the First Day” if they ever get full power in Washington again and that Republicans need to “get smart and tough” or “you’ll all be looking for a job much sooner than you thought possible!”

Republicans have been loyal to Trump on most issues, but they have resisted his repeated calls — even in his first term — to kill the filibuster, which triggers a 60-vote threshold in the Senate.

Hanging over the growing GOP rift is Trump’s surprise endorsement of Paxton. That intervention has Republican senators privately fuming that it could cost them their majority in November as they view the incumbent, Cornyn, as the better candidate in the November general election.

Democrats test Republicans on settlement fund

As Republicans move forward on the immigration enforcement legislation, Senate Democratic leader Chuck Schumer of New York said Democrats plan to force a vote on Trump’s proposed settlement fund.

Democrats have an opening because Republicans are trying to pass the immigration enforcement bill through a complicated budget process that requires a long series of amendment votes. Democrats are considering multiple amendments potentially to block that new fund outright or to ban any payments to Trump supporters who harmed law enforcement officers in the Jan. 6, 2021, attack on the Capitol.

Those amendments, along with others, could pass as a growing number of Republicans speak out against the fund and other parts of Trump’s agenda.

Thune said he was “not a big fan” of the new fund, which the administration announced as a part of a settlement that resolves the president’s lawsuit against the IRS over the leak of his tax returns. Cassidy called it a “slush fund” and said “you can’t just make up things.”

Tillis said he thinks it is a “real risk” that some of the rioters charged — and later pardoned by Trump — in the Jan. 6 attack could get compensation through the fund. He said that would be “absurd.”

On Wednesday, two police officers who helped defend the Capitol in the 2021 assault sued to block the payouts. Acting Atty. Gen. Todd Blanche, a personal attorney for Trump before joining the Department of Justice in Trump’s second term, would not rule out the possibility that rioters who assaulted police on Jan. 6 would be eligible for compensation when he testified in a Senate hearing this week.

Jalonick, Freking and Cappelletti write for the Associated Press.