OMC Stocks Fall Up To 9%, Crude Oil Crosses $100 Amid Iran Conflict

Mumbai: Shares of state-run oil marketing companies (OMCs) came under heavy selling pressure on Monday after global crude oil prices surged past the USD 100 per barrel mark. The spike in oil prices followed escalating tensions involving Iran, which disrupted energy shipments through the crucial Strait of Hormuz.

As a result, stocks of major public sector oil firms such as Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) fell sharply in early trade. Investors reacted negatively to rising crude prices, which could increase the cost burden for oil marketing companies.

Sharp Decline In PSU Oil Stocks

Among the three companies, Hindustan Petroleum Corporation recorded the steepest fall. HPCL shares dropped 8.67 per cent to an intraday low of Rs 370.10 compared to its previous closing price of Rs 405.25 on the BSE.

Bharat Petroleum Corporation shares declined 8.43 per cent to Rs 322.95 from the earlier close of Rs 352.70. Meanwhile, Indian Oil Corporation shares fell 7.29 per cent to an intraday low of Rs 156.30, down from the previous close of Rs 168.60.

The decline reflects investor concerns that rising crude oil prices may impact the profitability of oil marketing companies, which often face pressure when crude prices rise sharply.

Crude Oil Prices Surge Amid Middle East Tensions

Global oil prices jumped significantly after the conflict involving Iran disrupted shipping activity through the Strait of Hormuz, one of the world's most important oil transit routes.

Crude prices climbed close to USD 110 per barrel as some Middle East producers reduced output and shipping activity remained uncertain due to the ongoing conflict.

This surge represents one of the largest weekly gains in oil futures markets since the early 1980s.

Global Developments And Market Reaction

US President Donald Trump defended the rise in oil prices, saying the increase was a temporary effect of actions taken against Iran’s nuclear threat.

In a post on his social media platform Truth Social, Trump said that short-term increases in oil prices were a small price to pay for global safety and peace.

The spike in crude oil prices also affected the broader Indian stock market. Benchmark indices Sensex and Nifty 50 traded lower during the session. The Sensex was down 3.16 per cent at 76,424.55, while the Nifty 50 slipped 3.07 per cent to 23,697.80.