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Oil Stocks Crash 9% as Crude Tops $100 Amid Iran Conflict

Shares of major state-owned oil marketing companies like IOC, BPCL, and HPCL plunged up to nearly 9% in early trade. The sell-off was triggered as global crude oil prices surged past the $100-per-barrel mark. This spike followed supply disruptions after major Middle East producers reduced output and the Strait of Hormuz was effectively closed amid the Iran conflict. US President Donald Trump defended the price hike as a temporary consequence of confronting Iran's nuclear threat.

Key Points: Oil Stocks Plunge as Crude Crosses $100, Strait of Hormuz Disrupted

  • OMC stocks slump up to 8.67%
  • Crude oil surges past $100/barrel
  • Strait of Hormuz disruption rattles markets
  • Major indices Sensex and Nifty trade in red
2 min read

Domestic oil companies' stocks tumble up to 9 pc as crude crosses $100 a barrel

Shares of Indian Oil, BPCL, and HPCL tumble up to 9% as crude oil prices surge past $100 a barrel due to Middle East supply disruptions.

"Short-term oil prices... is a very small price to pay for USA and world safety and peace. - Donald Trump"

Mumbai, March 9

Shares of major state-owned oil marketing companies traded under pressure on Monday, declining up to nearly 9 per cent in early trade as the conflict involving Iran disrupted energy flows through the Strait of Hormuz and rattled global markets.

Global crude oil prices surged past the $100-a-barrel mark.

With this development, OMC stocks such as Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) slumped up to 8.67 per cent in early trade.

By 11.20 am, IOCL shares declined 7.29 per cent to an intraday low of Rs 156.30 from the previous close of Rs 168.60 on the BSE.

Meanwhile, BPCL shares fell 8.43 per cent to an intraday low of Rs 322.95 from Rs 352.70 on the same exchange.

While HPCL saw the steepest decline, dropping 8.67 per cent to an intraday low of Rs 370.10 from its previous close of Rs 405.25, according to BSE data.

These PSU stocks faced selling pressure as crude oil prices nearly touched $110 per barrel after major producers in the Middle East reduced output, while the Strait of Hormuz remained effectively closed amid the Iran conflict.

Meanwhile, US President Donald Trump defended the spike in oil prices, saying higher crude costs were a temporary consequence of confronting Iran's nuclear threat.

"Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for USA and world safety and peace," Trump wrote on the social media platform Truth Social.

The jump marks one of the biggest weekly gains in oil futures trading since the early 1980s.

The headline indices were also under pressure, with Sensex and Nifty 50 trading in the red, down 3.16 per cent at 76,424.55 and 3.07 per cent at 23,697.80, respectively.

- IANS

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Reader Comments

S
Sarah B
As an investor, days like these are brutal. The entire market is red. It shows how vulnerable our PSUs are to global geopolitics. Time to re-evaluate the portfolio, I guess.
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Priyanka N
Trump calling it a "very small price to pay" is easy for him to say. For millions of Indians, this price is our monthly budget for transport and groceries. The world's problems shouldn't cripple our growth.
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Aman W
This is exactly why we need to fast-track our renewable energy plans and reduce this dependency. Every time there's tension in the Gulf, our markets panic. Jai Ho Solar!
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Karthik V
While the stock fall is sharp, it might be a knee-jerk reaction. These are strong companies. Could be a buying opportunity for long-term holders if you believe the government will absorb some shock to protect consumers.
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Meera T
The Strait of Hormuz is a global chokepoint, but our diplomacy needs to be stronger. We have good relations with many Gulf nations. Hope they can ensure energy security for a major importer like India.

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