Shares of Shandong Molong Petroleum Machinery Company Limited (HKEX: 00568) surged more than 20% during the trading session. At the time of writing, the stock was up 17.52% to HK$6.44, with a turnover of HK$742 million.

This movement coincides with a rise in crude oil prices, where Brent crude briefly gained nearly 2%, surpassing $97 per barrel.

The backdrop for these market moves is a significant escalation in US-Iran tensions. From late June 2nd into the early hours of June 3rd, both sides engaged in repeated exchanges of fire. Iran's Islamic Revolutionary Guard Corps launched missile and drone attacks targeting the US Navy's Fifth Fleet headquarters in Bahrain and other US military bases in Kuwait and across the Middle East. This action was stated as retaliation for prior US strikes on an Iranian-linked oil tanker and an airstrike on a communications station on Iran's Qeshm Island.

US forces described their airstrike on Qeshm Island as "defensive" and claimed to have successfully intercepted all incoming weapons, denying any damage to their bases. In response to the heightened situation, airports in Bahrain, Kuwait, the United Arab Emirates, and other nations have suspended operations.