- Indian benchmarks fell; Brent crude surged due to US strikes.
- US forces struck Iran over commercial shipping attacks.
- Most oil marketing companies declined; Chennai Petroleum Corporation rose.
On Wednesday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.68 per cent to 24,233.20. Amid the broader market weakness, Brent crude oil future surged 3.44 per cent to USD 76.71 per barrel after fresh US military strikes against Iran heightened concerns over global oil supply. While most oil marketing companies (OMCs) traded lower, Chennai Petroleum Corporation (CPCL) bucked the trend, with its shares rising 4.04 per cent to Rs 1,130. Indian benchmark indices traded lower, with the Nifty 50 declining 0.50 per cent to 24,277.45, while the Nifty Oil & Gas index fell 1.28 per cent to 11,105.40
Brent Crude Surges After Fresh US Action Against Iran
According to a post by U.S. Central Command on X, U.S. Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway. The post stated that the U.S. strikes were in response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz, adding that “Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire.”
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OMCs Decline While Chennai Petroleum Outperforms
The sharp rise in crude oil prices weighed on oil marketing companies, as higher crude costs typically pressure their marketing margins.
Hindustan Petroleum Corporation Ltd (HPCL) declined 3.08 per cent, Bharat Petroleum Corporation Ltd (BPCL) fell 2.93 per cent, Indian Oil Corporation (IOC) slipped 1.52 per cent, while Reliance Industries was down 1.23 per cent. MRPL traded marginally higher, gaining 0.48 per cent. In contrast, Chennai Petroleum Corporation Ltd outperformed the broader oil and gas pack, rising 4.04 per cent despite weakness across most OMC stocks.
Middle East Tensions Keep Oil Markets Volatile
The latest escalation has renewed concerns over the security of crude shipments through the Strait of Hormuz, a key global oil transit route. Any disruption to supplies from the region could tighten global oil availability and keep crude prices volatile, with geopolitical developments expected to remain a key driver for the energy sector.
Also Read : Hormuz Attacks, Iran Sanctions: What The Latest US Move Means For India’s Oil
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