South Korean financial markets rallied following a temporary two-week ceasefire in the ongoing conflict in Iran, which is expected to alleviate energy supply disruptions. The benchmark Kospi index surged by 6.9%, marking its fourth straight day of gains, while major tech firms Samsung Electronics Co. and SK Hynix Inc. saw their shares rise by 7.1% and 13%, respectively. The South Korean won appreciated by 2.1% against the US dollar, reaching its strongest level since March. Analysts noted that the decline in oil prices has improved sentiment in South Korea, an economy heavily reliant on energy imports. However, caution remains as the underlying geopolitical tensions have not been fully resolved. The Kospi has increased nearly 40% this year, continuing its strong performance from the previous year. Despite a record sell-off by retail investors, foreign and institutional investors absorbed most of the stock supply, indicating a shift in market dynamics. Analysts suggest that this moment could signal a transition from a war-risk-driven market to a normalization phase, although they advise caution as trust among nations remains fragile.