Oil and gas stocks declined during morning trading. At the time of writing, SHANDONG MOLONG (00568) dropped 5.12% to HK$8.71, PETRO-KING (02178) fell 3.85% to HK$0.25, SINOPEC SSC (01033) decreased 3.37% to HK$0.86, and CNOOC (00883) was down 1.5% to HK$26.24. The pullback came as geopolitical tensions in the Middle East showed signs of easing, causing international crude prices to fall below $100 per barrel. Brent crude was quoted at $97.82 per ounce at the time of writing. Reports indicate that Iran contacted the U.S. expressing a desire to reach an agreement, with further talks between the two countries likely to take place on the 16th in Islamabad. In a statement, the Iranian president expressed willingness to continue negotiations within the framework of international law and adhere to ceasefire terms, while noting that previous U.S. "excessive ambitions" had hindered progress.