South Korea's stock market opened sharply lower on Wednesday, tracking a decline on Wall Street overnight as escalating military exchanges between the United States and Iran pushed oil prices higher. The benchmark KOSPI index started the session at 6625.47 points, down 210.33 points, or 3.08%, from its previous close.

Overnight, all major U.S. indices finished in the red. A fresh wave of American airstrikes targeting Iran fueled a surge in crude prices, which in turn heightened concerns over inflation in the world's largest economy. These inflationary worries triggered a sell-off in government bonds, driving the yield on the benchmark 10-year U.S. Treasury note to its highest level since January of last year.

The Dow Jones Industrial Average fell 0.79% at Tuesday's close, the S&P 500 dropped 0.71%, and the tech-heavy Nasdaq Composite shed 1.03%.