Coal stocks in Hong Kong mostly advanced during the session. At the time of writing, CHINA QINFA (00866) rose 2.57% to HK$3.19, KINETIC DEV (01277) gained 2.54% to HK$2.02, and YANCOAL AUS (03668) increased 1.76% to HK$40.50. On the news front, the U.S. President indicated on April 12 that oil and gasoline prices could remain elevated until the November midterm elections, unusually acknowledging the potential political costs of the decision to strike Iran six weeks prior. Oriental Securities believes that the U.S.-Israel conflict continues to evolve, and energy supply issues may not be resolved in the short term, making it likely that oil prices will stay high. Against this backdrop, coal prices are expected to maintain upward momentum. GF Securities noted that by 2026, the coal supply-demand balance is projected to shift from loose to tight, with coal price performance since the beginning of the year already exceeding expectations. In the near term, due to the Middle East situation, global energy prices and coal demand are further boosted, while import coal costs have also increased, suggesting potential for improved coal profitability and valuation flexibility. Guotai Haitong stated that against the backdrop of geopolitical disturbances, Europe and East Asia are being compelled to switch energy sources, which is likely to drive a recovery in global coal demand by 2026. Subsequently, from 2027 to 2028, amid rising global electricity demand fueled by AI and extreme weather, coal demand may enter another short-term upward cycle.