Israel's attack on Iran's South Pars gas field last weekend marks the first direct attack on energy infrastructure, according to JPMorgan's research report.

If regional conflicts further escalate, oil prices may return to US$120 per barrel, JPMorgan added. The broker's 1Q26 baseline forecast for Brent oil is US$55 per barrel, excluding any geopolitical risk premium or significant oil supply disruptions.

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JPMorgan recommended increasing long positions in high-quality Asian energy companies, such as PETROCHINA (00857.HK)  -0.070 (-0.993%)    Short selling $65.44M; Ratio 10.619%   , and raised its target price for PETROCHINA‘s H-shares to $8, reflecting breakthroughs in Xinjiang gas fields.

The broker also suggested selling SINOPEC CORP (00386.HK)  -0.030 (-0.725%)    Short selling $102.55M; Ratio 27.431%   , and expected its 2Q25 results to miss expectations. The broker's most bearish airlines are AIR CHINA (00753.HK)  -0.010 (-0.178%)    Short selling $2.37M; Ratio 10.855%   and CHINA SOUTH AIR (01055.HK)  -0.030 (-0.779%)    Short selling $1.35M; Ratio 10.330%   . For shippers, higher freight rates are expected to offset the negative impact of increased fuel costs, with the broker favoring Evergreen Marine (2603.TT) and COSCO SHIP HOLD (01919.HK)  -0.140 (-0.999%)    Short selling $18.06M; Ratio 13.057%   .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-18 12:25.)