Shares of COSCO SHIP ENGY (ASX: 01138) climbed more than 8% during the morning session. At the time of writing, the stock was up 8.29%, trading at HKD 17.25 with a turnover of HKD 364 million.

An analysis report from a securities firm noted that expectations for the reopening of the Strait of Hormuz have increased following the prospect of a US-Iran peace deal, leading to a sharp rise in spot freight rates on key routes. The TD3C Middle East route surged to nearly USD 500,000 per day, with Yanbu also recording deals at USD 230,000 per day. Rates from the US Gulf rose nearly 30% to USD 150,000 per day, while West African rates jumped over 80% to USD 170,000 per day.

In a previous report, JPMorgan stated that a potential US-Iran peace agreement significantly increases the likelihood of reopening the Strait of Hormuz, acting as a positive catalyst for tanker stocks. The reopening of the strait is expected to facilitate a normalization of crude oil procurement activities and inventory rebuilding, thereby boosting demand for tankers. The firm reiterated its "overweight" rating on COSCO SHIP ENGY with a target price of HKD 27.