Breaking! Oil surges, broad market plunges! Strait of Hormuz, major news

【Introduction】Big Drop

China Fund Reporter Taylor

Brothers and sisters, market trends change rapidly. Just now, oil prices surged, and global stock markets plummeted!

On the afternoon of March 17, international oil prices soared sharply, with Brent crude up over 4% and New York crude up over 5%.

Affected by this, the A-share oil and gas equipment sector rebounded in the afternoon, with RenZhi Co. hitting the daily limit, and Tongtong Co. rising nearly 5%. Stocks like Tongyuan Petroleum, Shandong Molong, Nanjing Steel, and CITIC Special Steel also followed the gains.

Additionally, the three major indices of the A-shares extended their declines, and the three major Hong Kong indices continued to plunge.

On the news front, Iran ignited a large natural gas field, further exacerbating the already tense global energy supply situation.

Moreover, earlier, the UK Maritime Trade Operations (UKMTO) reported that a oil tanker was attacked by an “unknown object” while anchoring near Fujairah, a major oil port in the UAE, late Monday.

The maritime authorities responsible for the region stated that the ship was struck 23 nautical miles east of Fujairah in the Gulf of Oman, with minor structural damage. No crew injuries or environmental damage have been reported, and the hull damage is minimal.

Fujairah is an important oil export route, bypassing the Strait of Hormuz. The Fujairah oil terminal port and the adjacent Fujairah Oil Industry Zone (FOIZ) have frequently been targeted by Iran.

Fujairah authorities said Tuesday they are working to control fires caused by drone attacks in the Fujairah Investment Zone.

Additionally, several U.S. allies refused President Trump’s call to dispatch warships to escort vessels through the Strait of Hormuz, angering the U.S. president. Trump accused Western partners of being ungrateful after long-term support from the U.S.

Phillip Nova senior market analyst Priyanka Sahdevwa said, “The focus of the oil market now is on the duration of the conflict, the supply disruptions in Hormuz, and how much damage this chaos will ultimately cause to the Gulf region’s oil infrastructure.”

Meanwhile, traders said that during the Asian morning, drone attacks on the Fujairah Oil Industry Zone caused fires (with no casualties), further supporting oil prices.

Middle Eastern benchmark crude prices have surged to historic highs, becoming the most expensive crude globally. Traders believe this is mainly due to reduced deliverable supplies.

Since the strait is effectively closed, the UAE (OPEC’s third-largest oil producer) has been forced to cut production by more than half.

Sources said Iran has requested India to release three oil tankers seized in February as part of negotiations, to ensure ships flying Indian flags or heading to India can safely pass through the Strait of Hormuz.

To curb rising energy costs, the International Energy Agency (IEA) head suggested that, based on the previous agreement to release 400 million barrels of strategic reserves, member countries could further increase their releases.

Israel stated that it has prepared detailed plans for at least three more weeks of war, and its military launched overnight strikes against multiple locations in Iran.

Editor: Jiang You

Proofreader: Jiyuan

Reviewer: Muyu