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Crude oil prices spiked nearly 2% after US President issued a dramatic warning amid escalating tensions between Israel and Iran
Oil Prices
Crude oil prices spiked nearly 2% after US President Donald Trump issued a dramatic warning amid escalating tensions between Israel and Iran. Despite the surge, shares of Indian oil marketing companies (OMCs) showed resilience in early trade on Tuesday, June 17.
Trump posted a late-night message on social media urging an “immediate evacuation of Tehran,” fueling speculation about potential US military involvement. His comments contrasted sharply with earlier hopes of de-escalation, raising fresh concerns about a wider Middle East conflict. He also warned Iran to abandon its nuclear ambitions before it was “too late.”
Following his remarks, Brent crude rose 1.8% to $74.51 per barrel, while WTI crude gained 1.9%, settling at $73.13 per barrel.
Despite the jump in global oil prices, domestic OMCs like Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil Corporation (IOC) traded with marginal gains around 9:25 AM, defying usual market patterns.
Typically, rising crude prices hurt OMCs, as higher input costs can squeeze margins—especially when retail prices are regulated or demand is weak. Conversely, upstream companies like ONGC and Oil India benefit, as their revenues rise with crude prices while costs remain relatively stable.
UBS noted that while crude has surged, OPEC’s spare capacity could limit further upside. It also expects Indian OMCs to report above-normal margins this quarter.
JM Financial said fears of crude crossing $80 per barrel remain subdued unless Iran disrupts the Strait of Hormuz, a crucial oil transit route. However, it believes such a scenario is unlikely, citing past regional conflicts where the Strait remained open due to strong Western deterrence.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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