HK Stock Market Move | Tensions between the US and Iran escalate, oil prices rise. China Eastern Airlines (00670) and Air China Limited (00753) both drop over 4%.

Aviation stocks are under pressure across the board. As of the time of writing, China Eastern Airlines (00670) fell by 4.34%, closing at HK$4.19; Air China Limited (00753) fell by 4.14%, closing at HK$5.1; China Southern Airlines (01055) fell by 3.39%, closing at HK$4.28; CATHAY PAC AIR (00293) fell by 0.79%, closing at HK$12.5. On the news front, there have been setbacks in US-Iran diplomatic contacts, with tensions escalating once again. On the evening of May 10, according to Iranian sources, Iran has officially rejected the proposal put forward by the United States, believing that agreeing to it would mean giving in to the excessive demands of US President Trump. Trump later posted on social media that Iran's response was "completely unacceptable." This morning, international oil prices surged by over 4%, with Brent crude oil futures rising to around $105. Guolian Minsheng Securities previously pointed out that fuel costs are the most significant cost item for airlines, accounting for about 30% of the total revenue of Chinese airlines. High oil prices have a significant impact on the profitability of airlines.