Oil and oil services stocks trended lower during the early trading session. At the time of writing, SHANDONG MOLONG (00568) fell 8.6% to HK$3.93; SINOPEC SSC (01033) dropped 7.22% to HK$0.90; CHINA OILFIELD (02883) declined 1.98% to HK$8.40; CNOOC (00883) was down 2.87% at HK$23.68; and PETROCHINA (00857) decreased 2.16% to HK$9.08. On the news front, WTI crude oil fell 4% and Brent crude dropped over 5% on Monday. Iranian Foreign Minister Araghchi recently stated in an interview that it is possible for Iran to reach a fair agreement with the United States. Furthermore, an Iranian official indicated that the Islamic Revolutionary Guard Corps has no plans to conduct exercises in the Strait of Hormuz, and no official statement of this nature has been issued by Iran, dismissing previous reports of planned live-fire drills there as "erroneous." Huatai Futures released a research report suggesting that the recent oil price surge stems from a confluence of geopolitical, macroeconomic, and liquidity factors. With the sharp decline in precious metals on Friday and the assumption of office by the new Federal Reserve Chair, the US dollar is expected to stabilize and rebound, potentially alleviating the macro narrative of a collapsing US dollar credibility. Consequently, the supportive push from macro sentiment and a weaker dollar on oil prices is moderating, and the associated liquidity factor may also recede. Geopolitically, the situation with Iran remains highly tense. Given that the Strait of Hormuz is a critical global oil export chokepoint, close monitoring of developments is essential, as it continues to provide strong support for short-term oil prices. However, vigilance is warranted against a potential sharp correction similar to the rapid reversal seen in the June 2025 event.