Institutional discussion on the market: Middle East situation escalating, oil shipping prices may soar.

Huatai Securities pointed out that as the most important oil transportation route in the world, the Strait of Hormuz in southern Iran faces an increased risk of blockage, disturbing the global shipping supply chain. The shipping sector may start a new round of growth following the Red Sea incident in 2024. In particular, international oil shipping is significantly affected by the situation in the Middle East, and freight rates are expected to sharply increase from the current low base; the impact on container shipping/bulk shipping in the Middle East region is relatively small.