The Korea Times
A two-week ceasefire between the United States and Iran will pave the way for Korea’s aviation and construction firms to ease cost pressures and improve earnings prospects amid falling global oil prices, industry officials said Wednesday. International crude oil prices plunged sharply following the truce announcement. On Wednesday, West Texas Intermediate (WTI) futures dropped as much as 19 percent on the eased tension in the Middle East. The oil price fall comes as a boon for airlines in particular, as fuel costs typically account for around 30 percent of their total expenses. As the ceasefire agreement was clinched on condition of reopening the Strait of Hormuz, a critical oil shipping route in the Middle East, concerns over the oil price hike have also been alleviated by the announcement. The U.S. dollar also weakened its valuation against the Korean won, which also brings major relief to airlines, as they pay for fuel in dollars. The won-dollar exchange rate opened at 1,479.9 won per dollar, Wednesday, down 24.3 won from the previous session, and continued its downward trend throu
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