Hong Kong stocks slipped on Friday as markets reacted to fresh developments in the Middle East and continued volatility in oil prices.
The Hang Seng Index lost 223.26 points, or 0.9%, to close at 25,277.32, while the Hang Seng China Enterprises Index fell 121.81 points, or 1.4%, to 8,574.07.
Oil prices declined as major European economies and Japan signalled support for efforts to secure shipping through the Strait of Hormuz.
Despite the latest moves, Brent was heading for a weekly rise of nearly 5% as attacks on Gulf energy infrastructure curtailed production, Reuters reported.
U.S. Treasury Secretary Scott Bessent said the U.S. could lift sanctions on Iranian oil held on tankers and may also release more crude from the Strategic Petroleum Reserve.
Meanwhile, Israel and Iran exchanged fresh strikes, a day after Tehran targeted an Israeli oil refinery. Trump also cautioned Israel against further attacks on an Iranian offshore gas field shared with Qatar.
In corporate news, Delton Technology (HKG:1989, SHE:001389) made its Hong Kong debut, closing nearly 34% higher at HK$96.00, compared with its offer price of HK$71.88.
Alibaba (HKG:9988) fell over 6% after its December-quarter profit plunged 67%.