HK Stock Market Move | Oil stocks continue to rise as Iran claims the closure of the Strait of Hormuz. Oil prices may continue to rise due to supply disruptions.

Oil stocks continued yesterday's upward trend. As of press time, PETROCHINA (00857) rose 4.13%, to 10.34 Hong Kong dollars; China Oilfield Services (02883) rose 3.33%, to 11.16 Hong Kong dollars; CNOOC Limited (00883) rose 1.94%, to 27.26 Hong Kong dollars. On the news front, according to CCTV reports, late on the night of March 2nd local time, an advisor to the Islamic Revolutionary Guard Corps in Iran stated that the Strait of Hormuz had been closed, and that Iranian forces would strike any ships trying to pass through the strait. However, the US Central Command later stated that the Strait of Hormuz was not closed. Several maritime insurance companies announced that they would cancel war risk coverage for ships operating in the Gulf region starting on the 5th. Open Source Securities stated that expectations of disruptions in oil supply are strengthening, and oil prices may continue to rise. The Middle East is one of the most important regions for global oil production and exports, and political instability in the region could disrupt local oil production and exports. Based on historical experience, if this situation persists for a long time, oil prices may further increase.