CITIC Securities: Repeated closures of the strait increase market volatility, and nonferrous metals are more sensitive to the freight rate pricing.

However, less than 24 hours later, the Islamic Revolutionary Guard Corps announced the closure of the Strait of Hormuz again, which repeatedly intensified market volatility. Given that the probability of easing tensions between the US and Iran is greater than the risk of escalation into war, major asset classes will be more sensitive to pricing related to navigation rights, especially US dollar-denominated metals that benefit from renewed expectations of Federal Reserve rate cuts triggered by falling oil prices.