Hong Kong Market Moves | Shares of China's 'Big Three' Oil Companies All Decline as Market Views Middle East Situation as "Contained," Driving Oil Prices Down 2.2%

Gelonghui, July 10 | Hong Kong-listed oil stocks declined collectively, with PetroChina and CNOOC dropping more than 2%, and Sinopec falling nearly 1%. In news developments, Iran announced strikes on U.S. military targets in Kuwait, Qatar, and Bahrain in response to U.S. airstrikes on Iran on Wednesday. However, markets viewed this exchange of fire as a contained escalation, leading crude oil prices to fall rather than rise. WTI crude dropped 2.2% to $71.87 per barrel, while gold rebounded by 1.1% to $4,121.67 per ounce. After the market characterized the geopolitical incident as a "contained escalation," risk premiums embedded in crude oil futures not only failed to rise but also declined.

Gelonghui Finance09:53

Tensions between the U.S. and Iran escalated, prompting Trump to switch Air Force One mid-trip during his return from the NATO summit after Israel informed the U.S. of a new Iranian plot to assassinate Trump.

At the sensitive moment of renewed hostilities between the U.S. and Iran, Trump abruptly switched presidential aircraft during his attendance at a NATO summit—an unusual move prompted by critical intelligence from Israel indicating that Iran was plotting a new assassination attempt against Trump.

wallstreetcn09:05

Hormuz Crisis Disrupts Supply: Iran Reportedly Rushes Over 10 Million Barrels of Crude Oil Out in 24 Hours; Qatar Suspends LNG Production Capacity Restoration

It has been reported that Iran urgently deployed multiple tankers within 24 hours to transport a total of 11 million barrels of crude oil, roughly equivalent to its weekly export volume prior to the conflict. Following an attack on a Qatari LNG carrier in the Strait of Hormuz, Qatar decided to suspend its accelerated plan to restore production capacity at Ras Laffan—one of the world’s largest LNG production facilities—and will maintain operations at minimum levels.

wallstreetcn02:43

Commodities: Goldman Sachs warns that the latest conflict in the Strait of Hormuz could delay the recovery of oil supply.

Goldman Sachs published a report estimating that crude oil production in the Persian Gulf in June remained approximately 1.05 million barrels per day below pre-war levels. Should tensions escalate again and disrupt shipping through the Strait of Hormuz, the recovery of Middle Eastern oil supply could be set back. Following a second consecutive day of hostilities between the United States and Iran, vessel traffic through the Strait of Hormuz has nearly come to a halt. Goldman Sachs noted that recent attacks on tankers indicate that risks associated with transiting the strait remain elevated, and under the current uncertainty surrounding the ceasefire, shipping companies may hesitate to navigate through the strait. Goldman Sachs estimates that, within the first 10 days after the Strait of Hormuz reopens, oil flows through the Persian Gulf

AASTOCKSJul 9 14:01

UBS Group: Downgrades Brent crude oil price forecasts for this year and next; lowers target prices for China's three major oil producers

Brent crude prices have recently fallen to around USD 70 per barrel, a decline exceeding UBS Group's previous expectations. However, as tensions in the Strait of Hormuz have not been fully resolved, crude oil supplies passing through the Strait remain at risk.

Zhitong FinanceJul 9 13:50 · Ratings

White House Braces for a Protracted Conflict in the Strait of Hormuz: Officials Warn They Will 'Slap Them a Few Times,' with Duration of Escalation Entirely Dependent on Iran

U.S. forces have completed a new round of strikes against Iran, hitting approximately 170 military targets over two consecutive days. However, Axios reported that the White House is preparing for a potential strait confrontation that could last several days or even weeks—the duration depending entirely on whether Tehran ceases its actions. Officials stated that Washington believes it can outlast Iran in a protracted conflict.

Golden10 DataJul 9 11:46