HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises by over 5%, the US relaxes sanctions on Iranian oil, creating short-term empty and long-term multiple opportunities in the oil shipping market.

COSCO Shipping Energy Transportation (01138) rose by more than 5% again, up 4.87% at the time of writing to 20.66 Hong Kong dollars, with a turnover of 262 million Hong Kong dollars. On the news front, comments by US President Trump temporarily eased market concerns about the escalating situation. However, a spokesperson for Iran's Armed Forces Hatam Anbia Central Command stated that Iran has taken the initiative in the Persian Gulf and Oman Sea areas and has effective control over the Strait of Hormuz. Iran does not need to lay mines in the Persian Gulf, but will take all necessary measures to ensure security when required. China Securities Co., Ltd. released a research report stating that the acquisition of Changjin Shipping by Mediterranean Shipping could permanently boost VLCC freight rates. In addition, the relaxation of US sanctions on Iranian oil could lead to short-term long positions in the oil shipping market. On March 20, the US granted a 30-day exemption for the shipment of 140 million barrels of Iranian crude oil by sea to suppress high oil prices. In the short term, Asian floating storage crude oil will be unloaded intensively, temporarily releasing shipping capacity; in the medium to long term, the risks of transit through the Strait of Hormuz are high, Iran has no surplus oil supply, and Asian refineries are seeking crude oil sources in the Atlantic Basin, pushing up demand for tankers.