12.03.202607:22:20UTC+00China Stocks Slip on Mideast Jitters

The Shanghai Composite slipped 0.1% to close at 4,129, while the Shenzhen Component declined 0.63% to 14,375 on Thursday, snapping a two-session advance as investors contended with escalating tensions in the Middle East and a sharp rise in oil prices. The US-Israeli war on Iran showed no signs of abating, with Iraq suspending operations at its oil terminals after two tankers were targeted in Iraqi waters, underscoring the heightened risk to regional supply.

In response, the IEA authorized its largest-ever emergency release of crude, totaling 400 million barrels, but markets judged the move insufficient to fully counter potential disruptions. China, however, appears relatively well positioned to absorb the supply shock, having spent years prioritizing energy security through the buildup of strategic reserves and the diversification of its energy mix.

Technology shares led the pullback, with notable losses in Huagong Tech (-5.2%), Eoptolink Technology (-3.7%), Zhongji Innolight (-3.6%), Beijing Teamsun (-2.8%), and Talkweb Information (-3.3%).