Samsung Crude Oil Futures ETF (03175) saw a sharp decline of more than 4% in late trading, though it later trimmed losses to stand 2.61% higher at HKD 11.01, with trading volume reaching HKD 4.155 million. The volatility comes as geopolitical tensions in the Middle East escalate once again.

On September 1, US forces launched strikes against military targets in Iran, prompting Tehran to respond with a large-scale drone attack on US facilities in Bahrain in the early hours of September 2. This exchange of hostilities has driven international oil prices sharply higher, with WTI crude breaking through the USD 92 per barrel mark and Brent crude surging past USD 97 per barrel.

Analysts at Haitong Futures note that the mutual attacks on oil tankers could significantly impact navigation through the Strait of Hormuz, potentially reversing the recent recovery in oil exports from the region and intensifying concerns over crude supply tightness. Hualian Futures shares a similar view, pointing out that the escalating US-Iran geopolitical situation could lead to prolonged disruptions in the Hormuz passage, extending supply disruption timelines.

On the demand side, refinery utilization rates in China are gradually recovering while US refineries continue operating at elevated levels. With global inventories generally remaining low, there is an underlying need for restocking in the current environment. Market participants are advised to closely monitor geopolitical developments in the short-to-medium term, as the market is expected to maintain elevated price levels in the near future.