Korean shares traded nearly 2 percent lower late Thursday morning on heightened market volatility sparked by escalating tensions in the Middle East and uncertainties surrounding the United States' monetary policy direction, despite its rate freeze decision. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 112.91 points, or 1.19 percent, to 5,812.12 as of 11:20 a.m. Overnight, the Dow Jones Industrial Average dipped 1.63 percent, while the tech-heavy Nasdaq Composite slid 1.46 percent and the S&P 500 pulled back 1.36 percent. Investors' risk appetite was sapped as Israel attacked Iran's largest gas field South Pars and Iran hit back with a strike on a major liquefied natural gas site in Qatar, driving up global oil prices again. U.S. Federal Reserve Chair Jerome Powell's remarks after the Fed's decision to maintain its policy rate in the 3.5-3.75 percent range also dragged down market sentiment. At a press conference, Fed Chair Jerome Powell said the surge in oil prices has increased inflationary pressures, signaling a cautious stance on the timing of further rate cuts. In Se