Israel-Iran tensions impact: Brent crude prices surge past $75; OMC stocks like IOC, BPCL crash up to 6%.

Time of India

19 hours ago

Oil prices rose after Israel's military action against Iran, intensifying the Middle East's geopolitical instability. (AI image)
Oil marketing companies' (OMCs) shares declined significantly on Friday, with Brent crude futures climbing by $6 to $75.36 per barrel, reaching peak levels in months. Oil prices rose after Israel's military action against Iran, intensifying the Middle East's geopolitical instability.
The situation has sparked worries about possible interruptions to worldwide oil distribution, particularly affecting crucial pathways such as the Strait of Hormuz.
OMC share prices reflected the impact, with
Indian Oil Corporation
(IOCL) decreasing by 3.9% to Rs 137.40, Bharat Petroleum Corporation (BPCL) falling 6.1% to Rs 299.20, and Hindustan Petroleum Corporation (HPCL) reducing by 5.3% to Rs 371.35.
The Israeli administration verified early on Friday its execution of airstrikes against Iran, with reports of explosions in Tehran.
These military actions were conducted as part of Israel's strategy to target Iran's nuclear facilities and missile development capabilities.
Iranian news outlets reported increased security measures as tensions rose, leading to growing concerns about potential military conflict escalation.
Naveen Vyas, Senior Vice President, Anand Rathi Global Finance says, 'Since India relies on imports for over 80% of its crude oil needs, a conflict between Iran and Israel could lead to a spike in Brent crude prices.
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Iran holds about 9% of the world's oil reserves, and any disruption could impact several key Indian sectors, including oil marketing companies (such as BPCL, HPCL, and IOC), paints (like Asian Paints and Berger Paints), as well as the automobile and cement industries.
'
'These sectors may experience demand slowdown or margin pressure if tensions escalate and persist for more than 3–6 months, particularly if Brent crude prices rise above the USD 82–85 per barrel mark,' he adds.
The Israeli strike has triggered widespread effects across global energy markets, causing oil prices to rise as traders factor in additional risk. As previously reported by ET, Saul Kavonic, senior energy analyst at MST Marquee, said "The Israeli attack on Iran has heightened the risk premium further."
Kavonic observed that whilst immediate disruptions to oil supply are not expected, the current geopolitical tensions have raised worries about possible Iranian counter-actions against regional oil facilities.
He additionally cautioned that should the situation worsen, leading Iran to target oil infrastructure or restrict oil movement through the Strait of Hormuz, this could put approximately 20 million barrels of daily oil supply at risk, leading to increased instability in worldwide oil markets.
Oil Marketing Companies are expected to experience considerable market fluctuations, as changes in international oil prices directly affect their operational profits and financial performance.
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