Aviation stocks in Hong Kong saw their declines deepen during the afternoon session. At the time of writing, AIR CHINA (00753) fell by 3.93% to HKD 4.65. CHINA EAST AIR (00670) dropped 3.27% to HKD 3.85, while CHINA SOUTH AIR (01055) declined 2.95% to HKD 3.95. The downturn follows news that efforts to restart Iran war negotiations have reached a stalemate, with transit through the Strait of Hormuz remaining nearly halted, continuing to disrupt global supply flows. On Tuesday, international oil prices climbed rapidly, with WTI crude futures up over 2% intraday to USD 98.52 per barrel. Brent crude also rose more than 2% to USD 104.07 per barrel. A research report from China Merchants Securities noted that due to the impact of fuel costs, domestic flight volumes have decreased year-on-year, resulting in higher prices but lower volume for domestic routes overall. The report highlighted that the blockade of the Strait of Hormuz and the sharp increase in jet fuel prices are significantly impacting aviation stocks. It suggested that an improvement in the Middle East situation could alleviate the negative sentiment currently suppressing airline stocks and pushing up oil prices. However, with ongoing fluctuations in US-Iran negotiations and Strait transit conditions this week, caution is still warranted regarding oil price volatility driven by geopolitical factors and the potential for sustained high mid-term price levels to erode profits.