--- title: "The Middle East conflict may escalate further, highlighting the value of cyclical price increase allocation" type: "News" locale: "en" url: "https://longbridge.com/en/news/281476029.md" description: "The situation in the Middle East is escalating, driving the logic of cyclical price increases to ferment, with multiple price increase sectors strengthening. Individual stocks such as LESHAN GIANTSTAR FARMING&HUSBANDRY and CPEC have hit the daily limit, with active capital. Trump has stated that he will take action against Iran, increasing the risk to oil supply, making it likely for oil prices to rise and difficult to fall. Currently, the price increase trends in non-ferrous metals, petrochemicals, and agricultural products have not yet ended. It is recommended to pay attention to the three major E Fund thematic ETFs, which comprehensively cover the cyclical price increase market" datetime: "2026-04-02T06:24:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281476029.md) - [en](https://longbridge.com/en/news/281476029.md) - [zh-HK](https://longbridge.com/zh-HK/news/281476029.md) --- # The Middle East conflict may escalate further, highlighting the value of cyclical price increase allocation Recently, the situation in the Middle East has escalated again, driving the logic of cyclical price increases to fully ferment, with multiple price increase tracks strengthening simultaneously. In terms of individual stocks, as of April 2nd, 14:05, **LESHA GIANTSTAR FARMING&HUSBANDRY (603477.SH)**, **CPEC (600339.SH)**, **Heshun Petroleum (603353.SH)**, and **Blue Flame Holdings (000968.SZ)** hit the daily limit, while **Jereh Group (002353.SZ)**, **China Animal Husbandry Group (600195.SH)**, **China Merchants Energy Shipping (601872.SH)**, and **China Merchants Jinling (601975.SH)** rose over 6%. Funds are actively flowing, and opportunities in related sectors are becoming prominent. On the news front, U.S. President Trump recently stated that a heavy blow will be dealt to Iran in the next 2-3 weeks. The escalation of geopolitical tensions has sharply increased the risk of oil supply, leading to heightened expectations for countries to scramble for and stockpile oil, making it likely for oil prices to rise rather than fall. From the perspective of cyclical commodity rotation patterns, looking back at the three rounds of commodity bull markets in 2005, 2009, and 2020, price increases follow the rotation pattern of "gold starts → silver follows → copper confirms → oil detonates → agriculture wraps up." Currently, non-ferrous metals have started, petrochemicals are taking over, and agricultural products are still warming up, indicating that the price increase trend has not yet ended. To keep up with the current price increase rhythm, three major E Fund thematic ETFs can be focused on: **1\. Oil ETF E Fund (159181) has a weight of nearly 40% in the "three major oil companies," providing sufficient β exposure to oil prices. Compared to similar oil indices, it leans more towards the midstream and upstream sectors, with stronger resource attributes.** **2\. Agriculture ETF E Fund (562900) covers breeding + planting + feed, aligning with the main line of agricultural price increases.** **3\. Chemical Industry ETF E Fund (516570) packages leading companies in the petrochemical, basic chemical, and coal chemical industries. With a scale of 2.32 billion, it ranks first in scale among ETFs of the same index, with a total management fee + custody fee of only 0.20% per year, the lowest fee rate among the same index.** The three main lines each play their role, comprehensively covering the current cyclical price increase market and adapting to current allocation needs ### Related Stocks - [600339.CN](https://longbridge.com/en/quote/600339.CN.md) - [159181.CN](https://longbridge.com/en/quote/159181.CN.md) - [161129.CN](https://longbridge.com/en/quote/161129.CN.md) - [603477.CN](https://longbridge.com/en/quote/603477.CN.md) ## Related News & Research - [TRUMP ON IRAN: WE HAVE TO GET THE RIGHT ANSWER](https://longbridge.com/en/news/287107535.md) - [TRUMP ON IRAN: NO RELIEF WILL BE GIVEN UNTIL A DEAL IS REACHED.](https://longbridge.com/en/news/287107877.md) - [TRUMP SAYS MORE FIGHTING TO COME UNLESS IRAN GETS SMART](https://longbridge.com/en/news/287097488.md) - [Axios says Trump is waiting for a response from Iran](https://longbridge.com/en/news/286682237.md) - [How Trump’s trade push against Canada backfired](https://longbridge.com/en/news/286675578.md)