HK Stock Market Move | The operation risk of energy facilities in the Middle East is increasing. Shandong Molong Petroleum Machinery (00568) rose by nearly 15% and PETRO-KING (02178) rose by over 13%.

Oil and gas stocks are generally opening higher. As of press time, Shandong Molong Petroleum Machinery (00568) rose 14.91% to HKD 12.02; PETRO-KING (02178) rose 13.46% to HKD 0.295; Shanghai Dazhong Public Utilities (01635) rose 8.19% to HKD 3.7; SINOPEC SSC (01033) rose 8.08% to HKD 1.07. On the news front, the situation in the Middle East escalated again yesterday, with Brent oil breaking through $110 after-hours. After Israel struck the South Pars gas field in Iran, Iran retaliated by targeting the energy infrastructure of three neighboring countries with airstrikes, causing serious damage to Qatar's Ras Laffan LNG liquefaction plant. According to CCTV news, reporters learned in the early hours of the 19th local time that Qatar's Ras Laffan natural gas facility was hit by missiles again. Earlier that day, Iranian sources claimed that Iran had launched attacks on oil facilities in "Gulf countries hosting Iranian enemies". Michael Brown, Senior Research Strategist at forex research firm Pepperstone, pointed out that Israel's attack on Iranian oil and gas facilities appears to signal "further escalation of ongoing conflict". He stated that this not only opens up a new battlefield but also significantly increases the risk of Iran launching retaliatory attacks on energy facilities in the Gulf region, which could significantly exacerbate the likelihood of disruptions in crude oil supply.