HK Stock Market Move | Most oil stocks are on the rise, with the risk of escalating tensions in the Middle East still present. The performance of the "Three Oil Giants" in Q2 is expected to benefit greatly from the rising oil prices.

Most oil stocks are up, as of press time, PetroChina (00857) rose 3.68% to 3.68 Hong Kong dollars; CNOOC (00883) rose 3.05% to 22.94 Hong Kong dollars; KUNLUN ENERGY (00135) rose 1.36% to 6.7 Hong Kong dollars; China Oilfield Services (02883) rose 0.9% to 6.74 Hong Kong dollars. In terms of news, recently, the military confrontation between the US and Iran in the Strait of Hormuz has escalated. EB SECURITIES released a research report stating that the current small-scale conflict between the US and Iran stems from fundamental disagreements over control of the Strait of Hormuz. Although technical negotiations based on the previous memorandum of understanding are ongoing, the oil market still expresses concerns about the prospects for peace between the US and Iran. The bank expects that it will be difficult for the US and Iran to reach an agreement in the short term on issues related to passage rights in the strait, sanctions on Iran, and the Iranian nuclear issue. During this period, military conflicts and partial blockades of the strait will continue to increase the volatility of oil prices. The report pointed out that the average price of Brent oil in Q2 26 was $96.68 per barrel, an increase of 44.9% year-on-year and 23.3% month-on-month. As oil and gas production giants, the performance of the "Three Barrels of Oil" in Q2 is expected to benefit significantly from the rise in oil prices. It is estimated that if the central price of oil rises from $85 per barrel to $100 per barrel, PetroChina's operating profit from oil extraction business is expected to increase by about 28 billion yuan, Sinopec's operating profit from oil extraction business is expected to increase by about 4.5 billion yuan, and CNOOC Limited's net profit attributable to shareholders is expected to increase by about 24 billion yuan. Looking ahead to the full year of 26, the risk of escalating tensions in the Middle East remains, and the central price of oil is expected to fluctuate at a high level. At the same time, the task of ensuring energy security will drive the "Three Barrels of Oil" to strengthen exploration and production efforts, highlighting the strategic value of the "Three Barrels of Oil".