HK Stock Market Move | Aviation stocks collectively under pressure as tensions between the U.S. and Iran escalate, oil prices return to the $100 level, and fuel costs are eating away airline profits.

Aviation stocks collectively under pressure, as of press time, China Eastern Airlines (00670) fell 3.14% to HK$3.08; China Southern Airlines (01055) fell 2.61% to HK$3.36; Air China Limited (00753) fell 2.16% to HK$4.07. On the news front, due to the escalation of the US-Iran situation, Brent crude oil futures touched $100 per barrel on Thursday, the first time since late May. As of press time, Brent crude oil has risen by over 27% this month. US President Trump threatened to intensify the military strikes against Iran and Houthi militants, saying he is considering launching a "major military attack." It is worth noting that currently, the Strait of Hormuz and the Strait of Malacca, the two major energy chokepoints in the Middle East, are facing substantial blockade threats simultaneously. It is reported that fuel is one of the major costs for airlines, with data from multiple airlines' 2025 annual reports showing that fuel costs generally account for around 30% of operating costs. Morgan Stanley released a research report stating that the three major Chinese airlines have already issued performance forecasts for the first half of this year. After recording a net profit in the first quarter of this year, the high oil prices and weak basic ticket prices are expected to drag down the second quarter net losses of the three major airlines to an average of 4.3 billion RMB, the highest quarterly loss since 2023.