South Korean Refiner Stocks Surge 40%+ This Month as Oil Prices Break $100 on U.S.-Iran Tensions

Brent crude futures surged past the $100-per-barrel threshold on July 25, marking the first time since May 22 as escalating military tensions between the U.S. and Iran raised concerns over Middle East supply disruptions. South Korean refiner stocks capitalized on rising crude prices and expanding refining margins. S-Oil gained 42.11% in July, while GS and SK Innovation climbed 43.74% and 37.09% respectively, outperforming the broader KOSPI index's 5.72% decline on the day.

In contrast, airlines faced headwinds from surging fuel costs. Korean Air fell 7.62% this month, with budget carriers Trinity Air, Jin Air, Jeju Air, and Asiana Airlines down 22.64%, 9.88%, 8.91%, and 6.8% respectively. Jet fuel typically accounts for about 30% of an airline's operating expenses.