The South Korean stock market surged by over 2% on Wednesday, closing above the 6,000-point mark for the first time since the U.S.-Iran conflict escalated in late February. The Korean won also strengthened against the U.S. dollar.

The Korea Composite Stock Price Index (KOSPI) advanced by 123.64 points, or 2.07%, finishing the session at 6,091.39. During trading, it reached an intraday high of 6,183.21 points.

Market sentiment improved as investors grew hopeful that Washington and Tehran would engage in a second round of talks after the initial peace negotiations ended without a result. Traders cautiously bet that tensions surrounding energy supply could ease.

Despite ongoing strains in the Strait of Hormuz, Brent crude prices fell by nearly 5% on Tuesday, dropping below $95 per barrel.

The rally in South Korean equities also tracked overnight gains on Wall Street, where the Dow Jones Industrial Average rose 0.66% and the Nasdaq Composite climbed 1.96% on Tuesday.