HK Stock Market Move | Oil stocks lead gains as probability of a new round of US-Iran conflict rises; geopolitical risk support for oil prices remains strong.

Oil stocks lead the gains. As of press time, CHINA OILFIELD (02883) rose 4.66% to HK$7.75; SINOPEC CORP (00386) rose 3.48% to HK$4.615; PETROCHINA (00857) rose 3.02% to HK$9.895; CNOOC (00883) rose 2.25% to HK$23.64. Ping An Securities noted that the Middle East geopolitical deadlock is unlikely to be resolved in the short term, with both the US-Iran and Yemen situations carrying significant risk of escalation, the security situation in the Strait of Hormuz deteriorating, and the probability rising of a new round of US military strikes on Iran; meanwhile, the Yemen situation is escalating in a spiral, with Houthi forces continuing to launch attacks on airports and oil facilities inside Saudi Arabia, significantly affecting Saudi crude exports and refinery processing. In summary, we believe geopolitical risk support for international oil prices remains strong. Huatai previously noted that factors such as repeated geopolitical conflicts kept the average international crude oil price at a high level in 26Q3, and oil and gas exploration companies are expected to see year-on-year profit growth, while some refiners are expected to post year-on-year profit improvement, benefiting from the favorable performance of refined products/aromatics.