IOC, BPCL, other OMC shares tumble up to 6% as brent crude tops $75/bbl amid Israel-Iran tensions

Shares of oil marketing companies (OMCs) slipped up to 6% on Friday as Brent crude futures surged by $6 to $75.36 per barrel—reaching their highest levels in months—following Israel's airstrike on Iran, which has significantly escalated geopolitical tensions in the Middle East.

The escalation has raised concerns about potential disruptions in global oil supplies, particularly through critical routes like the Strait of Hormuz.
Indian Oil Corporation (IOCL) fell 3.9% to Rs 137.40, while Bharat Petroleum Corporation (BPCL) dropped 6.1% to Rs 299.20. Hindustan Petroleum Corporation (HPCL) declined 5.3% to Rs 371.35.


The Israeli government confirmed early on Friday that it had launched airstrikes against Iran, with explosions reported in Tehran. These strikes were part of Israel’s ongoing efforts to cripple Iran's nuclear infrastructure and ballistic missile capabilities.

Also read: Oil jumps more than 12% as Israel strikes Iran, rattling investors

In response, Iranian media reported a heightened state of alert as the conflict intensified, with fears mounting over the potential for further military escalation.

The attack has created a ripple effect in global energy markets, with oil prices climbing as traders priced in a risk premium. As ET reported earlier, Saul Kavonic, senior energy analyst at MST Marquee, commented on the situation: "The Israeli attack on Iran has heightened the risk premium further."

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He noted that while oil supply disruptions are not imminent, the geopolitical situation has raised concerns over the potential for Iranian retaliation against regional oil infrastructure.

Kavonic further warned that if the conflict escalates to a point where Iran retaliates against oil infrastructure or limits the passage of oil through the Strait of Hormuz, up to 20 million barrels per day of oil supply could be at risk, exacerbating the volatility in global oil markets

OMCs are likely to see significant volatility, as fluctuations in global oil prices directly impact their margins and earnings.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)