COSCO SHIP ENGY (01138) shares climbed more than 4%, trading up 3.8% at HKD 14.22 as of the latest update, with a turnover of HKD 111 million.

Ongoing tensions between the US and Iran have led to a "dual-strait crisis," with Houthi forces blocking the Bab el-Mandeb Strait and disruptions in the Strait of Hormuz. In the past week, the Strait of Hormuz has effectively been closed, returning the VLCC market to an oversupply state. VLCC freight rates have generally declined from recent highs, with key routes like US Gulf-China and West Africa-China settling at USD 99,000 and USD 92,000 per day, respectively, while Suezmax rates stood at USD 152,000 per day.

Looking ahead, one analyst notes that if the Strait of Hormuz reopens to traffic, combined with a gradual return of regional cargo volumes and a global restocking cycle, the VLCC freight rate center could see a systematic upward shift in the second half of the year. Another brokerage adds that medium-term structural support for rates comes from route diversions, which lengthen voyage distances, and tight supply-side constraints, together driving the freight rate benchmark higher.