HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose by over 5% again. The tensions in Iran have rapidly increased the risk premium for the Strait of Hormuz.

COSCO Shipping Energy Transportation (01138) rose by over 5%, as of the time of writing, it increased by 5.31% to HKD 12.69, with a turnover of HKD 140 million. On the news front, according to Clarkson, as tensions escalate, crude oil prices have risen significantly, while the VLCC Middle East route WS has been rising for several consecutive days, reaching 88, corresponding to a TCE of over $60,000 per day. BOC International released a research report stating that the tension in Iran has rapidly increased the risk premium for the Strait of Hormuz, with VLCC daily income doubling to $68,000 in a week. Although the waterway is currently normal, the market has already reflected concerns in advance; a sharp decline in Venezuelan exports has forced Chinese buyers to turn to the Middle East and Brazil to purchase heavy crude oil, increasing demand for long-haul routes, supporting short-term tanker freight rates. The future trend depends on whether sanctions are relaxed.