South Korea's Kospi, the world's best-performing stock market this year, plunged 8% or 589 points to 6,886 on Monday, triggering a trading halt, as escalating conflict in the Gulf and Iran's claim that it had closed the strategically important Strait of Hormuz sent oil prices sharply higher and reignited global inflation fears.
The U.S. dollar strengthened alongside bond yields as investors increased expectations of another interest rate hike by the Federal Reserve. The move comes a day before Chair Kevin Warsh is scheduled to testify before Congress for the first time since taking office.
