Sinopec Corp (00386) fell more than 4% in Hong Kong trading, extending recent losses. At the time of writing, the stock was down 3.61% to HK$4.80, with a turnover of HK$867 million. Market concerns over potential disruptions to global crude oil supplies have intensified. Iran's new Supreme Leader, Mujtaba Khamenei, stated in his first televised address that Iran would continue strategic measures, including blocking the Strait of Hormuz, and open new fronts if necessary. Additionally, an unprecedented coordinated release of oil reserves by the International Energy Agency failed to calm the market as expected, instead heightening anxiety about prolonged supply risks. UBS analyzed scenarios with oil prices ranging from $50 to $120 per barrel, noting that CNOOC is highly sensitive to oil price movements, while PetroChina's profits tend to rise with increasing oil prices. Under its base case, UBS assumes Brent crude will average $72 per barrel this year. If prices rise to $80, $90, or $100 per barrel, Sinopec's profits could increase by 8%, 14%, and 13%, respectively. However, should oil prices exceed $100 per barrel, Sinopec's profitability is expected to decline.