PetroChina's stock plummeted 9.08% during intraday trading on Thursday, reflecting significant investor concerns about the company's future prospects.

The sharp decline comes despite the Middle East crisis initially buoying China's energy majors through higher oil and gas prices. However, analysts warn that the conflict doesn't bode well for the sector long-term, as the energy shock will ultimately accelerate Beijing's shift away from fossil fuels toward renewable energy sources.

While PetroChina benefited from higher production and profits in the first quarter, its footprint across both upstream production and downstream refining leaves it exposed to surging costs of feedstocks like crude oil, natural gas and naphtha. More critically, the crisis has validated Beijing's decades-long push into green energy, with President Xi Jinping recently remarking that China's early move into wind and solar has proven prescient for both energy security and economic resilience.