Oil Stocks Lead Hong Kong Gains as Rising US-Iran Conflict Odds Keep Geopolitical Risk Premium Strong

Stock News10-26 10:06

Oil sector stocks were among the top gainers, with China Oilfield Services Limited (02883) rising 4.66% to HK$7.75, Sinopec Corp (00386) up 3.48% at HK$4.615, PetroChina (00857) climbing 3.02% to HK$9.895, and CNOOC (00883) gaining 2.25% to HK$23.64 as of the time of writing.

Ping An Securities noted that the geopolitical standoff in the Middle East is unlikely to ease in the near term, with both the US-Iran situation and the Yemen conflict facing significant risks of further escalation. The security situation in the Strait of Hormuz is deteriorating, and the probability of the US launching a new round of military strikes against Iran is rising.

At the same time, the Yemen situation is escalating in a spiral pattern, with Houthi forces continuing to attack airports and oil facilities inside Saudi Arabia, dealing a substantial blow to Saudi Arabia's crude exports and refining operations. In summary, geopolitical risk continues to provide strong support for international oil prices.

Huatai Securities previously pointed out that repeated geopolitical conflicts and other factors kept the average international crude oil price at a high level in the third quarter of 2026. Oil and gas exploration companies are expected to post year-on-year earnings growth, while some refining companies are expected to see improved profits year-on-year, benefiting from favorable conditions in refined products and aromatics.

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