Oil and gas stocks opened broadly higher in Hong Kong trading. At the time of writing, Shandong Molong Petroleum Machinery Company Limited (00568) rose 14.91% to HK$12.02. Petro-King Oilfield Services Limited (02178) increased by 13.46% to HK$0.295. Dazhong Utilities Company Limited (01635) advanced 8.19% to HK$3.70. Sinopec Oilfield Service Corporation (01033) gained 8.08% to HK$1.07.

The surge follows a significant escalation in Middle East tensions. Yesterday, Brent crude futures climbed above $110 per barrel in after-hours trading. After Israeli strikes targeted Iran's South Pars gas field, Iran launched retaliatory airstrikes against energy infrastructure in three neighboring countries. Qatar's Ras Laffan LNG liquefaction plant was reported to have sustained severe damage.

Furthermore, reports on the 19th local time indicated that Qatar's Ras Laffan natural gas facility was struck by missiles again. Earlier that day, Iranian sources stated that Iran had launched another attack on oil facilities in "Gulf countries hosting Iran's enemies."

Michael Brown, Senior Research Strategist at foreign exchange research firm Pepperstone, commented that the Israeli strikes on Iranian oil and gas facilities appear to signal a further escalation of the ongoing conflict. He noted that this not only opens a new front but also significantly raises the risk of retaliatory strikes by Iran on energy facilities across the Gulf region. This development could substantially increase the likelihood of disruptions to global crude oil supplies.