Shipping stocks were strong early on the 11th. Investor sentiment appeared to be buoyed by expectations that ocean freight rates will rise after Iran completely shut the Strait of Hormuz.
As of 9:17 a.m. that day on the KOSDAQ market, STX Green Logis was trading at 3,380 won, up 780 won (30%) from the previous trading day. At the same time, Heung-A Shipping was also surging 5%.
After the United States heavily bombed Iran for two straight days, Iran completely shut the Strait of Hormuz. The Islamic Revolutionary Guard Corps declared on its official Telegram channel, "Due to regional instability, we are immediately closing the Strait of Hormuz to all vessels, including oil tankers and merchant ships."
The Strait of Hormuz is a key route through which about 20% of the world's seaborne crude oil volume passes. If the strait is blocked or military clashes occur, transportation expense could rise due to disruptions in vessel operations, higher insurance premiums, and the use of alternative routes.