Oil Marketing Companies See Shares Plummet Up to 6% Amid Rising Crude Prices Fuelled by US-Israel-Iran Tensions

Indian Stock Market Crashes Amid Ongoing Middle East War

The Indian stock market experienced a sharp decline on Monday, with oil marketing companies (OMC) stocks taking a significant hit due to the surge in crude oil prices. Indian Oil Corporation (IOC) shares plummeted by 5.03%, while Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) shares declined by 5.31% and 6.09% respectively. Reliance Industries shares also saw a decline of over 3%.

In contrast, oil producers saw a significant rally, with Oil and Natural Gas Corporation (ONGC) shares jumping by 4.73% and OIL India shares surging by 4.43%. The decline in OMC stocks mirrors the broader trend in the Indian stock market, with the frontline indices, Sensex and Nifty 50, trading sharply lower by over 1% each.

The sharp spike in crude oil prices, which rose by 13% to above $82 a barrel, the highest level since January 2025, was triggered by the ongoing US-Israeli war against Iran. Brent crude oil prices were up 4.82% at $76.38 a barrel, while US West Texas Intermediate (WTI) crude futures rallied 4.31% to $69.91.

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The war in the Middle East escalated over the weekend, with the coordinated US-Israel strikes on Iran killing Iran's Supreme Leader Ayatollah Ali Khamenei. Israel launched new air strikes targeting Tehran and expanded its military campaign to include attacks on Iran-backed Hezbollah militants in Lebanon.