As Iran reimposed a blockade on the Strait of Hormuz, shipping and refining stocks are surging on the 14th.
As of 9:30 a.m. that day in the Korea Exchange, STX Green Logis(465770) is trading at 3,300 won, up 760 won (29.92%) from the previous session. It went straight to the upper price limit (the top of the daily limit range) early in the session.
At the same time, Heung-A Shipping(003280) is up 10%, HMM 3%, Hung-gu Oil(024060) 15%, and 한국석유 4%.
Tensions between the United States and Iran have reignited recently. The United States resumed airstrikes against Iran, and Iran reimposed a blockade on the Strait of Hormuz. U.S. President Donald Trump said he would impose a 20% charge on cargo passing through the Strait of Hormuz.
As global oil prices jump, buying has flocked to refining stocks. U.S. West Texas Intermediate (WTI) August futures are up 9% and trading around $78.
On expectations that sea freight rates will rise, shipping stocks are also strong. 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 a military clash occurs, transportation costs could rise due to disruptions to vessel operations, higher insurance premiums, and the use of detour routes.