Tensions from U.S.-Israel strikes on Iran and the closure of the Strait of Hormuz have intensified global oil market concerns over Middle Eastern crude supplies. Against this backdrop, China's "Big Three" oil companies saw another surge during trading on March 3, following their historic collective limit-up the previous day. By the morning session close, Cnooc Limited (600938.SH), Petrochina Company Limited (601857.SH), and China Petroleum & Chemical Corporation (600028.SH) all hit the 10% daily upside limit. Petrochina reached its highest share price in nearly 11 years at 11.95 yuan per share, while Cnooc Limited hit a record high since its 2022 listing at 39.46 yuan per share. China Petroleum & Chemical Corporation climbed to its highest level since October 2024, reaching 7.11 yuan per share.
Beyond the three major players, other A-share oil and gas stocks continued their strong performance, with over twenty constituent stocks hitting the daily limit. Geo-Jade Petroleum Corporation (600759.SH) recorded its fourth limit-up in six sessions, while Shuifa Gas Co.,Ltd. (603318.SH) achieved three consecutive limit-ups. Shandong Molong Petroleum Machinery Company Limited (002490.SZ), Xinjiang Zhundong Petroleum Technology Co.,Ltd. (002207.SZ), Offshore Oil Engineering Co.,Ltd. (600583.SH), and Cnooc Energy Technology&Services Limited (600968.SH) all posted two straight limit-ups. Multiple other stocks including Xinjiang Hongtong Natural Gas Co.,Ltd. (605169.SH) and Shanxi Guoxin Energy Corporation Limited (600617.SH) also surged by the 10% cap.
The catalyst came from reports that an advisor to the commander of Iran's Islamic Revolutionary Guard Corps stated late on March 2 that the Strait of Hormuz had been closed, with Iran prepared to strike any vessels attempting passage. Official confirmation from the Revolutionary Guard remains pending. The Strait of Hormuz is the world's most critical waterway for daily crude oil transit, serving as the essential export route for Saudi Arabia, Iraq, Qatar, the UAE, Kuwait, Bahrain, and Iran. According to commodity data firm Kpler, over 14 million barrels of crude oil passed through the strait daily last year, accounting for nearly one-third of global seaborne crude exports.
Shipping data indicates that tanker speeds in waters surrounding the Strait of Hormuz have generally dropped to zero. Several European governments have issued emergency directives to their flagged tankers en route, prohibiting passage through the strait to avoid security risks from escalating tensions. Industry experts believe the timing of the strait's reopening will be the primary factor influencing global oil markets and related trading performance.
Notably, former U.S. President Donald Trump previously suggested that conflict with Iran could conclude within four weeks or less. "The closure of the Strait of Hormuz means higher costs for alternative routes, but the actual impact on shipping and supplies depends on the duration of the closure," explained Li Yan, an analyst at Longzhong Information. She added that if the current Iran-Israel conflict doesn't significantly prolong—remaining contained to around 20 days as in previous years—the impact on global crude supplies should remain manageable.
According to Li's analysis, should the conflict conclude, reduced geopolitical risks combined with OPEC+'s confirmed production increases starting in April would maintain the long-term global crude oversupply pattern. International oil prices would likely experience short-term spikes followed by medium-to-long-term declines as conflict intensity diminishes. "Market attention remains focused on when the strait will reopen," stated the energy and chemical research team at Jianxin Futures Research Institute, which expects the current conflict's impact to exceed those seen in 2020 and 2025.
Prior to the current conflict, reports indicated Iran had begun transferring substantial crude volumes to floating storage to prevent significant export disruptions from military tensions. Li Yan noted that Iran's floating crude storage has shown a continuous upward trend since the fourth quarter of last year, currently exceeding 49 million barrels—a more than 70% increase from the 2025 average to date in 2026.
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