Petroleum and natural gas shares led the rally of shipping shares on the Oslo Stock Exchange in the midst of escalating the conflict between Iran and Israel.

Frontline, Okeanis and BW LPG were among the shipping companies who saw their shares win in the wake of the attacks, Trade Winds notes.

Arctic Securities analyst Kristoffer Barth Skeie said: “The market crisis is that this makes the attacks look more dynamic and less likely to be recorded as diligently, which happened with the attacks last April and October.”

“The increased probability of a prolonged regional conflict means that the market will pricing a greater risk to bid,” he said.

In addition, he said that “the risk of prolonged risk for the regional supply will push oil companies and traders to move more loads from the area as soon as possible, a situation that transfers the pricing power back to the owners.”

Skeie added that “the risk of prolonged risk for regional supply will push oil companies and traders to move more loads from the area as soon as possible, a situation that carries the pricing power back to the owners.”

“The fact that fewer shipowners may want to enter an area with a potential war risk will also contribute to the narrow capacity,” he noted.

However, the usual practice of the tanker market to give the charter a few days before confirming a charter means that the initial reaction can be excessive.

“The market crisis for the duration will be the key here too,” he said.

Rise of shipping shares

Okeanis Eco Tankers rose 7.1%, Hunter Group scored 28%, Frontline 7.9%, Hafnia 6.6%and BW LPG 7.3%. . In addition, AP Moller-Maersk shares rose 2.6% to Copenhagen, while MPC container Ships records 3.9% in Oslo.

Fearnley Securities said the attack could lead to an increase in risk insurance premiums for loads that are moving to the Middle East and the Persian Gulf.

Fredrik Dybwad and Nils Thommesen analysts reported in their note that “there may also be fewer shipowners who are willing to reach nearby ports, which could burden the fares”.