The oil sector plummeted sharply, with Zhunyou Co., Ltd. and Beiken Energy hitting the daily limit down, and Tongyuan Petroleum and others dropping over 10%.

Oil sector stocks fell sharply during trading on the 8th. As of the time of this report, Keli Co., Ltd. was down more than 14%, Tongyuan Petroleum and Qianeng Hengxin fell by over 10%, and Zhunyou Co., Ltd., Beiken Energy, and Zhongman Petroleum all hit the daily limit. China National Offshore Oil Corporation fell by about 7%, and China Petroleum was down nearly 6%.

Driven by the U.S. and Iran stating that they have agreed to a two-week ceasefire, international oil prices saw a major drop. Brent crude futures once fell by more than 17% to $90.01 per barrel during the session, and WTI crude futures once fell 19% to $91.05 per barrel.

According to a report by CCTV News, U.S. President Trump wrote on a social media platform on the 7th, saying: “I agree to suspend bombing and attacks on Iran for a period of two weeks.”

Trump said, “We received the ten-point proposals put forward by Iran and believe they are a feasible basis for negotiations. The United States and Iran have reached consensus on nearly all the points that were previously under dispute, but the two weeks will allow the agreement to be finalized and completed.”

In addition, Iran’s foreign minister Araghchi said in the early hours of the 8th local time that, in response to a request from Pakistan, he, on behalf of Iran’s Supreme National Security Council, announced that if the U.S. and its ally cease attacks on Iran, Iran’s armed forces will stop retaliating. With coordination with Iran’s armed forces, during the next two weeks, ships will be able to pass safely through the Strait of Hormuz, provided that technical restrictions permit.

Institutions said that, due to the impact of the Iran conflict, short-term price fluctuations in some petrochemical products are intensifying, and the mid-term price center of gravity will also be pushed upward as a result. However, the increase in the long-term price center of gravity will be limited. Because once crude oil import channels are restored to full flow, and in the context of excess production capacity, the price level is expected to drop significantly.