Energy stocks advanced against the broader market trend. As of writing, Shandong Molong Petroleum Machinery Co., Ltd. (00568) rose 3.22% to HK$6.74, CNOOC Limited (00883) gained 2.35% to HK$27.04, and PetroChina Company Limited (00857) increased 1.47% to HK$11.05. The catalyst for the move is heightened market concern over a potential escalation in U.S.-Iran tensions, which pushed Brent crude futures to expand gains, rising over 2%. Reports indicate former U.S. President Donald Trump is expected to convene a meeting with key members of his national security team on the 19th to discuss options for renewed military action against Iran. According to Israeli media reports from the 17th, Israeli Prime Minister Benjamin Netanyahu and Trump held a phone call that day to discuss the possibility of restarting military operations against Iran. TD Securities noted that with rapid draws in crude inventories in both China and the U.S., coupled with tightening refined product supplies, Brent crude prices could potentially surge to $150 per barrel, disrupting the recent period of market calm. This follows a report from Saudi Arabia to OPEC stating its crude oil production fell further last month to its lowest level since 1990, as conflict with Iran disrupted exports from the Persian Gulf.
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