JP Morgan says a US‑Iran peace deal would significantly raise the probability of
the Strait of Hormuz reopening, a positive catalyst for tanker names by
increasing chances of normalized crude purchases and inventory rebuilds. The
bank reiterates an overweight on COSCO SHIPPING Energy Transportation (01138.HK)
with a PT of HKD27, noting the market has lost about 1.3 billion barrels of
supply since the Middle East conflict and that trade will likely shift to
longer‑haul sources (US, West Africa, Brazil), pushing VLCC freight above
historical averages. JP Morgan says recent weakness in tanker shares reflects
reduced confidence in panic restocking rather than a deterioration in industry
fundamentals.
