HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose more than 7%. Analysts say that the resurgence of US-Iran conflict is unlikely to change the positive trend of oil transportation.

COSCO Shipping Energy Transportation (01138) rose more than 7%, reaching 6.61% as of the time of writing, at HK$13.38, with a turnover of HK$179 million. On the news front, Houthi rebels in Yemen announced on the 20th that they would implement a "maritime blockade" against Saudi Arabia, effective immediately. The Saudi-led coalition subsequently stated that measures have been taken to protect the safe passage of member countries' ships through the Mandeb Strait and will respond firmly to any threats from the Houthi rebels. Analysts point out that if the Mandeb Strait is simultaneously blocked, the alternative route (e.g., from Saudi Yanbu Port to Ningbo-Zhoushan Port) will see a significant increase in voyage distance by 129.8%, potentially generating demand for around 148 additional VLCC oil tankers (based on an estimated cargo volume of 5 million barrels per day). Huayuan Securities believes that in the medium to long term, geopolitical conflicts may gradually ease, Middle Eastern crude oil exports are expected to gradually recover, and oil shipping rates are expected to continue to rise. These three major trends are likely to resonate. Continued increases in oil production in the Middle East and Atlantic China Welding Consumables, Inc. region, diversified layouts of Asian crude oil imports leading to longer shipping distances, potential simultaneous growth in crude oil shipping volumes, coupled with limited VLCC supply due to compliance and accelerated retirement of older ships, indicate a positive outlook for the oil shipping market. The "Changjin factor" reshapes industry pricing logic, potential geopolitical changes catalyze the industry, and the "golden age of oil shipping" may be on the horizon.