Oil and gas stocks opened higher across the board.

At the time of writing, Shandong Molong (00568) shares were up 14.87% to HK$6.72, while Dalipal Hldg (01921) shares rose 9.35% to HK$3.39. CNOOC (00883) shares gained 2.6% to HK$25.66, and PetroChina (00857) shares increased by 1.77% to HK$10.33.

On the news front, U.S. President Trump threatened on the 10th (Eastern Time) to launch another, "very severe" strike against Iran. Iran's armed forces stated that the Strait of Hormuz is closed to all vessels effective immediately, and violators will be targeted.

Additionally, EIA data showed a significant decline in U.S. crude oil inventories once again. On Wednesday, WTI crude futures closed up 2.1%, settling above $91 per barrel, reversing the previous downtrend.

Shenwan Hongyuan noted that it expects the Brent crude price to trade within a range of $80-$120 per barrel in 2026. On the supply side, geopolitical factors leading to the closure of the Strait of Hormuz have significantly restricted nearly 20 million barrels per day of crude and product exports. Although geopolitical tensions are easing, they have already caused global crude oil destocking. Coupled with the time required for subsequent resumption of production at Middle Eastern oil fields, support from the supply side remains strong. On the demand side, short-term consumption is being suppressed by high oil prices, but medium to long-term demand is still expected to maintain growth.