Oil and gas stocks in Hong Kong are facing broad selling pressure. At the time of writing, shares of CNOOC (00883) were down 2.73% at HK$23.54. CHINA OILFIELD (02883) shares declined 2.12% to HK$7.39. SINOPEC CORP (00386) fell 2.06% to HK$4.28, while PETROCHINA (00857) dropped 1.9% to HK$9.80.

The sector's weakness follows a significant retreat in international oil prices. Brent crude futures are hovering around the $82 per barrel mark, while West Texas Intermediate (WTI) crude has dipped below the $80 per barrel threshold for the first time in over three months.

This price decline comes amid reports that the United States and Iran have signed a memorandum of understanding electronically. Multiple Iranian vessels have reportedly passed through a US naval blockade zone without incident. A statement indicated that the Strait of Hormuz is "partially open" and is scheduled to be fully reopened on Friday, June 19th.

However, the reported agreement does not include a requirement for Israel to withdraw its troops from Lebanon. In response to the developments, Israel's Prime Minister stated that "the struggle is not over."