Oil-related equities are rallying against the broader market's weaker tone, with China Oilfield Services Ltd (02883) climbing 2.93% to HK$7.19, CNOOC Ltd (00883) advancing 2.17% to HK$24.44, and PetroChina Co Ltd (00857) gaining 1.15% to HK$9.675 as of the latest trading session.

The surge comes as the 60-day negotiation window outlined in the US-Iran memorandum expired on August 17. Tehran has stated it will impose a final deadline of several weeks for Washington to honor the agreement, warning that if diplomatic efforts falter, tensions in the Strait of Hormuz and the surrounding region could escalate. Meanwhile, the US has indicated no intention to extend the memorandum. Analysts suggest that the confrontation between the two sides is unlikely to be resolved in the near term.

The International Energy Agency (IEA) has noted that while the pace of oil demand contraction is slowing, persistent supply disruptions are further tightening the near-term market balance. The agency now projects a global supply deficit of 1.8 million barrels per day in the third quarter, more than doubling its earlier estimate of approximately 800,000 barrels per day.

In parallel, tighter refined product supplies have driven refining margins in the Atlantic Basin to record highs in July, reflecting the broader strain on energy markets amid heightened geopolitical risk.