HK Stock Market Move | Oil prices drop sharply, oil stocks fall further. Shandong Molong Petroleum Machinery (00568) fell more than 9%, while China Petroleum (00857) fell more than 8%.

The oil sector showed a broader decline in the closing session, with China Petroleum (00857) down 8.56% to 10.68 Hong Kong dollars; CHINA OILFIELD (02883) down 6.2% to 8.63 Hong Kong dollars; CNOOC (00883) down 5.71% to 26.44 Hong Kong dollars; Shandong Molong Petroleum Machinery (00568) down 9.15% to 7.35 Hong Kong dollars. On the news front, international oil prices plummeted, with Brent crude falling over 3% to below $100 per barrel. According to data from Jinshi, sources reported that the US and Iran have reached a consensus on gradually reopening the Strait of Hormuz in exchange for easing the maritime blockade. The next few hours will witness a breakthrough in the situation of ships being trapped in the strait. It is reported that the Strait of Hormuz accounts for about 20% of global seaborne crude oil transportation, and once shipping risks decrease, the pressure on the global energy supply chain will significantly ease, weakening the risk premium of oil prices driven by recent geopolitical tensions.