[Market Focus] Shipping Stocks Plunge... Tensions Ease on Reports of Iran Proposing 'Conflict-Ending Negotiations'

Shipping stocks are experiencing a steep decline. This appears to be due to expectations that concerns over a blockade of the Strait of Hormuz may ease, following reports that Iran has proposed negotiations to end the conflict with the United States.

As of 9:58 a.m. on March 5, STX Green Logis was trading at 7,170 won, down 1,180 won (-14.13%) from the previous trading day. HMM was trading at 2,665 won, down 240 won (8.26%). At the same time, Korea Line Corporation also fell 65 won (-2.91%) to 2,165 won, continuing its downward trend.

This weakness in shipping stocks is interpreted as a result of expectations for higher shipping rates, which had risen due to Iran's threats to blockade the Strait of Hormuz, having now subsided.

Previously, on March 2 (local time), Iran's Revolutionary Guard had announced that it would burn any vessels attempting to pass through the Strait of Hormuz. Following this, domestic shipping stocks had surged for several days as expectations for increased shipping rates outweighed concerns over higher fuel costs. The Strait of Hormuz is a critical route, accounting for about 20% of the world's marine oil shipments.

However, the previous day, The New York Times (NYT) reported that the day after airstrikes by the United States and Israel, Iranian intelligence authorities had proposed negotiations to the U.S. Central Intelligence Agency (CIA) to end the conflict, through a third country. As a result, expectations are spreading throughout the market that the war between the United States and Iran may end sooner than anticipated.

This content was produced with the assistance of AI translation services.