--- title: "Geopolitical risks in the Middle East continue to escalate, and oil prices have returned above $100" type: "News" locale: "en" url: "https://longbridge.com/en/news/282471009.md" description: "Geopolitical risks in the Middle East are escalating, and oil prices have returned to above $100. After the failed peace negotiations between the United States and Iran, Trump announced a blockade of the Strait of Hormuz, leading to a significant rise in international oil prices, with WTI crude oil up 8% and ICE Brent crude up over 7%. The A-share oil sector also rose, with the oil ETF China Merchants (159197) increasing by 1.69%. Ping An Securities pointed out that uncertainties remain in the Middle East situation, and oil prices may maintain strength in the short term, with the mid-term oil price center expected to rise to $80 per barrel. Domestic oil companies are reducing their sensitivity to oil prices through diversified layouts" datetime: "2026-04-13T01:39:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282471009.md) - [en](https://longbridge.com/en/news/282471009.md) - [zh-HK](https://longbridge.com/zh-HK/news/282471009.md) --- # Geopolitical risks in the Middle East continue to escalate, and oil prices have returned above $100 After the peace talks between the United States and Iran over the weekend ended without results, U.S. President Trump announced a blockade of the Strait of Hormuz. As a result, international oil prices surged, with WTI crude oil soaring 8% in early trading on April 13, and ICE Brent crude rising over 7%, both surpassing $100 per barrel. The A-share oil sector responded with a rise, with the oil ETF China Merchants (159197) increasing by 1.69%, HSPC rising by 4.5%, and Intercontinental Oil & Gas, Blue Flame Holdings, Zhongman Petroleum, and Houpu Co., Ltd. all rising over 3%. Ping An Securities believes that the geopolitical risk in the Middle East remains elevated, and it is challenging to reach an agreement on issues such as control of the Strait of Hormuz, uranium enrichment, and the Iranian nuclear deal; the progress of negotiations is not optimistic. Additionally, the number of vessels passing through the Strait of Hormuz remains limited, far from restoring normal flow, and the tightening of global oil supply is still unfolding. Therefore, the potential crisis in the supply of chemical products has not been resolved, and oil prices and chemical product prices may still trend strongly. In the medium term, the new oil price center may shift to around $80 per barrel. In the face of severe fluctuations in international oil prices, domestic oil companies have reduced their performance sensitivity to oil prices through upstream and downstream integration and diversification of oil and gas sources, while accelerating investments in the opening of domestic offshore oil and gas resources to reduce dependence on foreign energy. The oil ETF China Merchants (159197) tracks the China Merchants CNI Oil & Gas Index, focusing on balanced allocation across the entire oil and gas industry chain, with the "three major oil companies" (China National Petroleum, China National Offshore Oil, China Petroleum & Chemical) accounting for nearly 40% of the total weight. As of the latest closing date, this index has accumulated a growth of 44.87% over the past three years, while the Shanghai and Shenzhen 300 Index has risen 12.45% during the same period, with an index dividend yield of approximately 3.32% and a price-to-earnings ratio of about 16.57 times, providing a certain advantage in dividend yield and valuation safety margin. 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