HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls over 8% again, still differences in strait passage terms, uncertainty leads to freight rates falling and remaining highly volatile.

COSCO Shipping Energy Transportation (01138) fell by over 8%, dropping 8.5% to 15.4 Hong Kong dollars, with a turnover of 354 million Hong Kong dollars as of the time of publication. On the news front, a new round of conflict between the US and Iran has recently occurred, mainly due to different interpretations of a memorandum of understanding to end the war, especially on the issue of passage through the Strait of Hormuz. After a brief conflict, reports from the media suggest that the US and Iran have agreed to stop attacking each other, and they will continue negotiations in Doha, the capital of Qatar, on the 30th, focusing on the issue of the Strait of Hormuz. Orient pointed out that the reopening of the strait is not an overnight process. Shipowners are concerned about factors such as the safety of passage through the Strait of Hormuz, and freight rates have not shown significant increases and have even fallen. According to Poten, after the reopening of the Strait of Hormuz, crude oil prices temporarily surged due to a release of short-term vessel demand, but this did not lead to a sustained, significant increase. The main reason is the high uncertainty surrounding safety, insurance, routes, and navigation control, leading to freight rate declines and high volatility.