Alternative energy stocks are rallying as international oil prices surge amid escalating Middle East tensions. HD Hyundai Energy Solutions, a solar and renewable energy company, led gains with a nearly 25% jump in a single day.
According to the Korea Exchange on the 12th, HD Hyundai Energy Solutions closed at 130,700 won, up 24.48% from the previous day. The stock hit an intraday high of 135,300 won, marking a 52-week record. SK Eternix (29.91%), Kumyang Green Power (15.45%), and Hanwha Solutions (3.11%) also closed higher.
Growing concerns over oil supply disruptions amid heightened Middle East tensions have concentrated investor sentiment on energy-related stocks.
Crude prices spiked to $119.48 per barrel intraday on the 9th before plunging to the $80 range after U.S. President Donald Trump suggested a possible early end to the war. The International Energy Agency announced overnight it would release 400 million barrels from strategic reserves. However, prices resumed their climb as Iran maintained its blockade of the Strait of Hormuz and Iranian attacks spread to waters near Oman and Iraq.
Iran's Central Military Command Khatam al-Anbiya warned the United States and Israel on the day to "prepare for $200 per barrel," and international oil prices again surpassed $100 per barrel intraday.
Eyes Turn to Alternative Energy
Interest in alternative energy sources is growing under these circumstances. Ahn Ju-won, a researcher at DS Investment & Securities, said, "Domestic renewable energy stocks have been performing well recently. In Korea, expectations for government policy are playing a major role, while in the U.S., political landscape changes are anticipated in the midterm elections scheduled for November this year." Ahn predicted that solar-centered renewable energy expansion is expected domestically, with HD Hyundai Energy Solutions positioned to benefit the most.
Nuclear power-related stocks also gained. Doosan Enerbility closed at 103,500 won, up 2.48% from the previous trading day. KEPCO KPS (7.20%), KEPCO E&C (6.10%), Hyundai E&C (4.64%), and Daewoo E&C (5.13%) also finished higher.
Kang Hyun-ki, a researcher at DB Financial Investment, explained, "When oil prices rise due to the Iran situation, alternative energy naturally attracts relative interest." He added, "Many Korean nuclear-related companies also have strengths in pure construction. Even if not immediately, we can anticipate contracts from the Middle East region after the conflict there concludes."
