OMC Stocks Tumble as Iran-Israel War Sends Oil Prices Soaring

Hyderabad, June 13 (Maxim News): The ongoing conflict between Iran and Israel has sent shockwaves through global oil markets, pushing prices sharply higher and triggering a sell-off in shares of Indian oil marketing companies (OMCs). On Friday, Israel defied global warnings and launched airstrikes on Tehran, Iran’s capital, further escalating tensions in the already volatile Middle East.

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This dramatic turn of events has driven oil prices to their highest levels in months. West Texas Intermediate (WTI) crude surged 12.6% to settle at $76.61 per barrel, while Brent crude, the global benchmark, climbed 12.2% to $77.77 per barrel. The sudden spike reflects growing concerns that the conflict could disrupt oil supplies passing through the critical Strait of Hormuz.

The Strait of Hormuz, a narrow 40-kilometre-wide waterway between Oman and Iran, is one of the world’s most vital energy chokepoints. Only about 2 km of the strait is navigable for large ships. Every day, roughly 21 million barrels of oil—representing 21% of global daily consumption—flow through this route from key producers such as Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, and Iran. Additionally, the strait handles about 20% of the world’s liquefied natural gas (LNG) shipments.

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The heightened geopolitical risk has weighed heavily on Indian OMC stocks. Bharat Petroleum Corporation Limited (BPCL) shares plunged 6.1% to ₹299.20, while Indian Oil Corporation Limited (IOCL) slid 3.9%. Hindustan Petroleum Corporation Limited (HPCL) also faced selling pressure, falling 5.3% on the bourses.

Market analysts warn that if tensions escalate further and shipping through the Strait of Hormuz is disrupted, oil prices could rise even more steeply, impacting fuel costs, inflation, and economic growth globally, including in India, which is heavily reliant on oil imports.

Investors are advised to monitor developments closely as the situation remains fluid, and any further escalation could have far-reaching implications for energy markets and equities linked to the sector.

SEO Keywords: Iran-Israel war, Strait of Hormuz oil supply, oil prices surge, OMC stocks fall, BPCL share price, IOCL stock update, HPCL stock decline, Middle East tensions, global oil market, crude oil price news.  (Maxim News)

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