On May 26, COSCO Shipping Energy fell 4.74% in regular trading, trading at HK$17.81/share, with trading volume of approximately HK$113 million.
On the news front, the US and Iran reportedly reached a 60-day ceasefire agreement, with Iran committing to clear mines in the Hormuz Strait and restore free navigation. Under the deal, Iran will fully open the strait within approximately 30 days after the agreement takes effect, while the US will lift port blockades and implement phased sanctions relief. International oil prices plunged nearly 7% on the news as war premium rapidly unwound.
The Hormuz Strait had been effectively closed due to geopolitical conflict, previously driving oil shipping rates sharply higher and benefiting COSCO Shipping Energy. VLCC one-year time charter rates had exceeded USD 120,000/day. With the strait expected to reopen, the geopolitical premium that supported elevated freight rates faces significant compression. However, some analysts note that pent-up demand from global refineries starved of crude could trigger a short-term shipping capacity squeeze once navigation resumes, potentially supporting rates during the transition period.
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