HK Stock Market Move | COSCO Shipping Energy Transportation (01138) fell more than 7% in the afternoon. Global ship owners are cautious about reopening the Hormuz route.

COSCO Shipping Energy Transportation (01138) fell more than 7% in the afternoon, with a drop of 7.61% to HK$15.66 as of press time, with a turnover of HK$473 million. On the news front, the U.S. and Iran have reached a temporary agreement to reopen the Strait of Hormuz, but ship owners responsible for transporting oil and natural gas globally still have doubts about the actual operation of the reopening. Many parties have cited previous experiences of several rounds of ceasefire agreements falling through and have chosen to stay put. The world's largest ship owner's direct trade organization BIMCO warns that several key details in the U.S.-Iran agreement still need to be clarified before safe passage can be confirmed. Orient points out that the real impact on oil transportation lies in the conditions for passage through the Strait of Hormuz. Last week, passage through the Strait of Hormuz remained low. Future passage conditions will continue to change with the conflict situation. We believe that passage through the Strait of Hormuz will gradually improve rather than happen overnight, with key factors such as passage methods, safety, and costs still undecided. If the strait is opened or gradually restored to normal levels.