Energy stocks opened significantly lower. At the time of writing, Shandong Molong Petroleum Machinery Company Limited (00568) fell 14.94% to HKD 7.86. SINOPEC SSC (01033) dropped 7.61% to HKD 0.85. PETRO-KING (02178) declined 6.78% to HKD 0.275. CNOOC (00883) was down 5.26% to HKD 25.6.

The market movement follows a reversal in Middle East tensions. The former US President announced acceptance of a two-week ceasefire proposal mediated by Pakistan, a move also accepted by Israel and Iran. An Iranian official stated that Iran-US negotiations are scheduled to begin this Friday, April 10th, in Islamabad, Pakistan's capital. Furthermore, Iranian Foreign Minister Araghchi announced early on the 8th, on behalf of Iran's Supreme National Security Council, that the Strait of Hormuz will ensure safe passage for vessels during the two-week period.

In response, international oil prices continued to plummet. WTI crude oil futures briefly crashed over 19%, hitting an intraday low of $91.05 per barrel. Separately, according to the latest reports, Pakistan's Prime Minister Shehbaz Sharif has invited Iranian and US delegations to the capital, Islamabad, for talks. Prime Minister Sharif also stated that the ceasefire between Iran and the US would take effect at 3:30 AM Iran time (8:00 AM Beijing Time) on the 8th.