Surge in Samsung S&P GSCI Crude Oil ER ETF as Iran Proposes Bill to Tighten Strait Transit Control, Overnight Oil Market Rally

Stock News11:29

Samsung S&P GSCI Crude Oil ER ETF (03175) surged over 3%, trading at 9.57 Hong Kong dollars at the time of reporting, up 3.29%, with a trading volume of 692,900 Hong Kong dollars.

Market reports indicate that the Iranian parliament is reviewing a draft bill aimed at strengthening control over transit rules in the Strait of Hormuz and the Persian Gulf. Key proposals include banning the passage of vessels associated with the United States, Israel, and other hostile nations, among several other transit regulations.

According to insider sources, the northern and southern shipping lanes of the Strait of Hormuz are set to be canceled. All transit will subsequently be shifted to a central corridor, with Iran managing the entry point, while Iran and Oman jointly manage the exit.

Analysts from Nanhua Futures note that the overnight oil market rallied again, with short-term expectations that Oman and Iran will reach a provisional agreement on strait navigation. Under this arrangement, Iran would control entry, while both Iran and Oman would jointly oversee the exit, with vessels from the United States and Israel banned from passage. Concurrently, former U.S. President Donald Trump has stated that the strait is under U.S. control.

This situation highlights two key points: first, the provisional agreement on the strait has not received U.S. approval, casting doubt on the strait's transit capacity; second, the ongoing negotiations between Iran and Oman have excluded the United States, raising questions about the progress of U.S.-Iran talks. Combined with the weekend risk window, oil prices have found support near a key level and are trending upward. The market is closely watching the substantive progress of U.S.-Iran negotiations.

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