Shandong Molong (00568) saw its stock soar by 14.81% in pre-market trading on Monday, as escalating tensions between Iran and the United States sparked a rally in oil-related stocks across Hong Kong. The significant jump comes amid investor anxiety over potential Iranian retaliation against U.S. attacks on its nuclear sites, raising concerns about global oil supply and inflation risks.
The surge in Shandong Molong's stock price is part of a broader trend affecting oil, shipping, and port stocks in Hong Kong. Investors are closely monitoring the situation in the Strait of Hormuz, a critical oil transit point off Iran's coast. The strait, which is only about 33 km wide at its narrowest point, facilitates approximately 25% of global oil trade and 20% of liquefied natural gas supplies. Any disruption to this vital waterway could have significant implications for global energy markets.
While Shandong Molong led the pack with its impressive 14.81% gain, other oil-related stocks also saw substantial increases. JX Energy jumped 14%, Dalipal Holdings rose 12%, and Petro-king climbed 11%. The ripple effect extended to shipping and port stocks as well, with TS Lines up 10%, Xiangxing Int gaining 7%, and COSCO Ship Energy advancing 3%. These movements underscore the market's sensitivity to geopolitical events and their potential impact on global trade and energy supplies.
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