STX Green Logis surged to its daily upper limit as fighting between the United States and Iran intensified again. The gain is attributed to growing expectations that the company would benefit from higher shipping rates as tensions mounted around the Strait of Hormuz, a critical chokepoint for global crude oil transport.
STX Green Logis was trading at 3,925 won as of 2:53 p.m. on the 2nd, up 905 won, or 29.97%, from the previous session, according to the Korea Exchange. The stock opened at 3,490 won and quickly widened its gains during the session to reach the daily price ceiling.
Analysts link the surge to heightened uncertainty over the Strait of Hormuz after U.S.-Iran hostilities flared again about a month after the previous escalation. U.S. Central Command said on the 1st that it had successfully completed strikes on Iranian military targets. Targets included facilities tied to Iran's Islamic Revolutionary Guard Corps (IRGC), such as air defense installations, radar systems, maritime assets and facilities, mine-laying capabilities and communications facilities.
Iran has also retaliated, further raising tensions. The IRGC said it was carrying out missile and drone attacks on U.S. military bases and related facilities in the region, according to Iran's state-run Press TV.
Market participants are focusing on the possibility that prolonged fighting in the Middle East could disrupt maritime logistics and push freight rates higher. Analysts expect that if disruptions to passage through the Strait of Hormuz, a key artery for global energy transport, persist, shipping rates could rise further as vessels travel longer routes and supply tightens.
Shipping rates are already climbing. The Korea Container Freight Index (KCCI) for cargo departing Busan stood at 4,591 as of the 31st of last month, up 85 points, or 1.9%, from a week earlier, according to the Korea Ocean Business Corporation. The renewed tensions in the Middle East have fueled expectations of continued rate increases, which analysts say is being reflected in STX Green Logis shares.
