HK Stock Market Move | The tension between the US and Iran stimulated the oil and gas stocks. Shandong Molong Petroleum Machinery (00568) rose more than 9%.

Shandong Molong Petroleum Machinery (00568) surged more than 9%, rising 9.34% to 3.98 Hong Kong dollars, with a turnover of 4.12 billion Hong Kong dollars at the time of publication. On the news front, on January 12th, the US announced a 25% tariff on countries trading with Iran, and threatened military action, causing a sudden escalation in tension between the US and Iran. Guotai Junan Futures pointed out that due to Iran's special geographical location and its important role in the Middle East, any escalation of conflict with the US is likely to increase geopolitical tension and cause drastic fluctuations in oil prices. More importantly, Iran controls the vital shipping route for oil in the Gulf region, the Strait of Hormuz. If Iran were to block this strait due to threats, it would cut off the largest pathway for exporting crude oil in the Middle East and pose a risk of supply disruption.