Geopolitical tensions driving up international oil prices, with multiple beneficiary sectors in A-shares performing strongly since March.

Under the influence of tense geopolitical tensions, since March, international crude oil prices have shown a strong upward trend, with Brent crude futures once approaching $120 per barrel, and currently still around $105 per barrel. Driven by the sharp rise in crude oil prices, multiple benefiting sectors have performed strongly, with the coal sector rising over 6% cumulatively since March, the petrochemical sector up more than 22%, and the oil exploration sector increasing nearly 15%. Industry insiders say that the ongoing escalation of Middle Eastern geopolitical conflicts and the blockage of shipping through the Strait of Hormuz have caused international oil prices to continue soaring recently, and short-term oil prices may continue to rise. The industries benefiting from rising oil prices can be roughly divided into four categories: sectors directly benefiting from oil price increases, sectors benefiting from substitution effects, sectors with strong pass-through pricing ability, and sectors with inflation-hedging properties. (China Securities Journal)