The Bank of Korea analyzed that Israel's airstrikes on Iran were limited in scope but there is a possibility that global risk-off sentiment may strengthen in the future.
On the morning of the 28th, Yoo Sang-dae, Deputy Governor of the Bank of Korea, held a market situation review meeting at the Bank and stated, "Israel's attack on Iran last weekend was limited, excluding oil and nuclear facilities, but it is difficult to rule out the possibility that global risk-off sentiment may strengthen depending on Iran's response and its intensity."
He emphasized, "Especially with the upcoming US presidential election and major countries' monetary policy decisions, volatility in the global financial markets may increase, so we must maintain heightened vigilance and closely monitor the development of risks and their impact on domestic and international finance and the economy."
Israel conducted three airstrikes on Iranian military targets on the 26th. Iran has indicated it will respond appropriately to Israel's attacks, further escalating military tensions in the Middle East region.
Although the Israel-Iran conflict occurred over the weekend when financial markets were closed, international oil prices rose last week in the global financial markets due to concerns over Israel's retaliatory attacks on Iran.
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