As armed clashes between the United States and Iran intensify and international oil prices surge, domestic renewable energy-related stocks are showing strength early in the session.
As of 9:34 a.m. on the 20th, SK eternix(475150) was trading at 54,800 won on the main board, up 2,800 won (5.38%) from the previous session. It opened down more than 2% early in the session but quickly turned higher, at one point rising 9.62% to 57,000 won, extending gains.
At the same time, HD Hyundai Energy Solutions(322000) was up 6,800 won (6.18%) at 116,900 won. Hanwha Solutions was also up 1.63%, and DaeMoung Energy likewise was gaining 2.10% on the KOSDAQ market.
The strength in renewable energy shares is seen as the result of a surge in international oil prices as geopolitical risks in the Middle East expand. The United States and Iran have escalated the level of engagement, exchanging retaliatory airstrikes after a de facto collapse of a cease-fire deal. On the 17th, two U.S. soldiers stationed in Jordan were killed and one went missing in Iran's ballistic missile and drone attack.
That morning, Brent crude September futures rose 3.12% from the previous session to $90.85 a barrel. It was the first time Brent crude topped $90 a barrel since June 11. West Texas Intermediate (WTI) August futures also gained 3.10% to $85.05 a barrel.
In the market, there is a view that if the U.S.-Iran clash drags on, concerns will grow over potential disruptions to crude shipments through the Strait of Hormuz, drawing buying into alternative energy stocks.