Energy stocks advanced during Tuesday morning trading in Hong Kong, with notable gains across the sector. As of the latest update, China Petroleum & Chemical Corp (00386) climbed 3.07% to HK$4.87, while PetroChina Co Ltd (00857) rose 1.91% to HK$10.15. China Oilfield Services Ltd (02883) added 1.39% to HK$7.275, and CNOOC Ltd (00883) increased 1.21% to HK$25.18.

On the news front, Iran issued a warning on Monday that it would retaliate if the United States launched further attacks on Iranian assets, explicitly stating that energy infrastructure in the Gulf region—including American oil and gas interests—remains vulnerable to strikes. This geopolitical tension has pushed international crude prices higher, with Brent crude nearing the $100-per-barrel mark.

Goldman Sachs has cautioned that if attacks on shipping in the Middle East escalate further, international oil prices could surge to $120 per barrel. However, rather than directly betting on crude, the investment bank recommends that investors consider long positions in European natural gas, diesel, and other refined products to hedge against geopolitical risks. These markets, according to the firm, are likely to face more severe supply disruptions than crude oil itself.