The Zhitong Finance App learned that aviation stocks were under collective pressure this morning. As of press release, Air China (00753) fell 3.09% to HK$4.23; Eastern Airlines (00670) fell 2.71% to HK$3.23; and China Southern Airlines (01055) fell 2.4% to HK$3.45.

According to the news, the resurgence in Hormuz triggered a strong rebound in international crude oil, and Brent crude oil rebounded above $80. On August 6, local time, Trump stated that the Strait of Hormuz navigation agreement had not been officially implemented. At the same time, Iran stated that it will only discuss new strait navigation regulations with Oman, review the navigation control bill, plan to ban US and Israeli ships from crossing the strait, and impose a 20% higher fine on illegal merchant ships.

A previous China Merchants Securities research report pointed out that the recent US-Iran situation and strait traffic conditions are still uncertain, and we need to pay attention to the impact of the twists and turns in the Middle East situation on oil prices and sector sentiment. Currently, the overall market value of the sector is low since the epidemic. If cost pressure is relieved, it is expected that profits and market value elasticity will be released.

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