HK Stock Market Move | COSCO Shipping Energy Transportation (01138) is currently down more than 9%, with little trading volume on the Middle East route. Institutions suggest monitoring changes in the oil shipping gray market.

COSCO Shipping Energy Transportation (01138) is currently down by over 9%, as of the time of writing, it has dropped by 9.59% to HK$17.16, with a turnover of HK$882 million. On the news front, the escalating conflict between the US and Iran in the Middle East has led to a halt in shipping in the Strait of Hormuz, with no shortage of the route. It is reported that JP Morgan tracked seven ships sailing through this narrow waterway last Wednesday, and ten ships on Thursday. Analysis shows that since the escalation of US-Iran conflict, an average of about eight ships pass through the strait each day. Cathay Haitong released a research report stating that the recent US military actions against Iran have had a significant impact on the oil shipping market. In the short term, the Strait of Hormuz is almost stagnant, with Middle East-China VLCCTCE soaring to around $480,000, with the freight for a single barrel of crude oil reaching as high as $10. However, as Middle East oil exports have been significantly reduced, shipowners are generally canceling previous Middle East cargo deals; as oil shipping demand shifts rapidly to other oil-producing regions such as West Africa and the Gulf of Mexico, related shipping route prices remain high and are expected to stay that way. In the future, it is recommended to focus on changes in the grey market.