In early trading on the 30th, oil-related stocks are broadly higher. As signs point to a prolonged war between the United States and Iran and international oil prices surge, buyers are piling in.
As of 9:32 a.m. that day on the Korea Exchange, KIM ANKOR Oilfield Overseas Resources Development Fund is trading at 338 won, up 42 won (14.19%) from the previous session. At the same time, Hung-gu Oil on the KOSDAQ market is up 1,470 won (7.38%) at 21,400 won.
In addition, Joong Ang Enervis (5.34%) and Kukdong Oil & Chemicals (1.32%) are also gaining.
At 6:20 p.m. on the 29th (local time) on the New York Mercantile Exchange, West Texas Intermediate (WTI) May futures are trading at $103.1 per barrel, up 3.5% from the previous session. Brent May delivery is also surging 3.05% to $116.10 per barrel. This is the highest level since Russia's invasion of Ukraine in Jul. 2022.
The pro-Iran armed group Houthis in Yemen officially said on the early morning of the 28th (local time) that it fired missiles toward Israel. Concerns are being raised that Houthi involvement could also threaten navigation in the Red Sea.
The Red Sea, stretching from the Bab el-Mandeb Strait to the Suez Canal, is a key route for Middle Eastern oil and gas heading to Europe. According to the U.S. Energy Information Administration (EIA), crude oil flows through the Bab el-Mandeb Strait averaged 9.3 million barrels per day in 2023, accounting for about 12% of the world's seaborne crude oil trade.
The United States is attempting negotiations while ratcheting up airstrike pressure on Iran. On the 29th (local time), The New York Times (NYT) reported that, including recently reinforced troops in addition to existing forces stationed at U.S. bases in the Middle East, the number of U.S. troops in the region has topped 50,000. That is an increase of roughly 10,000 in a month.