Hong Kong stocks closed lower Tuesday as rising oil prices pushed up inflation concerns and Treasury yields, reinforcing expectations that the U.S. Federal Reserve could raise interest rates this week.

The Hang Seng Index fell 250.36 points, or 1%, to close at 24,667.24, while the Hang Seng China Enterprises Index dropped 79.67 points, or 0.96%, to 8,204.91.

Oil prices extended their gains after fresh attacks on Saudi Arabian oil infrastructure raised concerns over further supply disruptions in the Middle East. Higher energy costs and a stronger dollar added to inflation concerns and pushed Treasury yields higher, weighing on risk assets.

AI and technology shares also came under pressure amid a broader pullback in the sector and a wave of Chinese AI companies raising funds in Hong Kong. The Hang Seng TECH Index fell 0.6%, while the Hang Seng Biotech Index declined 1.4%.

Among individual stocks, Contemporary Amperex Technology (HKG:3750, SHE:300750) fell 6% after China's market regulator approved its acquisition of an undisclosed stake in Chongqing Yaoning New Energy Technology.

SG Group (HKG:1657) fell nearly 5% after proposing to change its English name to Sefon Holdings and subdivide each existing share into 10 shares.