HK Stock Market Move | Shipping stocks extend decline as U.S. plans to legalize "shadow fleet" tankers; institutions expect this to weigh on shipping company shares overall.

Shipping stocks extend their decline. As of press time, COSCO SHIPPING Energy Transportation (01138) fell 4.27% to HK$16.37; SITC (00316) fell 3.62% to HK$46.92; OOIL (00316) fell 3.27% to HK$150.7; COSCO Shipping Holdings (01919) fell 2.68% to HK$16.34; The Pacific (02343) fell 2.28% to HK$3.64. On the news front, according to market media reports, U.S. Energy Secretary Chris Wright recently said the Trump administration is authorizing the sale of some sanctioned tankers, planning to allow these vessels to operate legally through refurbishment and approval procedures to transport unsanctioned crude oil. The U.S. hopes to expand the available tanker fleet and ease transport disruptions caused by the Iran war and the blockage of the Strait of Hormuz. A Daiwa research report noted that the U.S. is considering allowing some previously sanctioned "shadow fleet" tankers to carry unsanctioned crude oil and petroleum products with approval from the U.S. Treasury Department. The move aims to boost crude and refined product export capacity in the Gulf region and ease high global tanker freight rates; it is expected to weigh on shipping company shares overall. The bank believes that although the proposal is a temporary exemption rather than a formal removal of sanctioned vessels from the list, it already signals a possible significant policy shift. Some previously restricted VLCCs and other tankers may return to part of international oil trade, and the move shows the Trump administration is increasingly inclined to prioritize lowering freight rates and energy prices rather than strictly enforcing shipping-related sanctions.