COSCO SHIP ENGY (01138) saw its intraday gain exceed 6%. As of the time of writing, the stock was up 5.45%, trading at HKD 19.17, with a turnover of HKD 520 million.

The latest weekly report from Clarksons indicates that as the Middle East conflict entered its second week, the tanker and energy markets continued to experience significant impacts. Vessel traffic through the Strait of Hormuz remains approximately 95% below normal levels. The report also noted that while the tanker market showed "broad softening" compared to the previous week, the average spot earnings for VLCCs are still around $180,000 per day, overall remaining at an extremely high level.

A research report from China Merchants Securities stated that the US-Iran conflict shows a trend of becoming protracted, leading to a de facto disruption of the shipping route. The reduction in cargo volume on the Middle East route will also affect freight rates. Alternative routes, such as those from West Africa and the US Gulf, have relatively ample capacity, causing rates to retreat from their highs. Subsequent developments will require monitoring the situation regarding strait transit. If limited passage can be established, the tanker market could then present an optimal scenario of "having both volume and favorable pricing."