The share price of COSCO SHIP ENGY (01138) has fallen sharply by more than 4%. At the time of writing, the stock is down 4.1% to HK$12.16, with a turnover of HK$183 million.

The recent volatility in the Middle East has led to ongoing disruptions to shipping traffic through key straits. The U.S. Central Command has announced another strike against Iran, which reportedly disabled a Curacao-flagged oil tanker, the M/T Belma, that was heading to Kharg Island. Within 24 hours of the re-imposed blockade, two other vessels were also reportedly persuaded to turn back, continuing the impact on maritime passage.

From a medium-term perspective, some analysts believe recent U.S. actions may aim to pressure Iran into relinquishing its control demands over the strait. This view suggests the underlying trend of normalizing traffic through the strait remains intact in the medium term. Should the strait reopen, tanker capacity utilization is expected to return to the high levels seen before the conflict, with potential benefits from inventory restocking and control of long-term charter rates adding further upside.