Global oil markets were roiled early Friday after Israel launched sweeping airstrikes on Iran’s nuclear and missile facilities, sparking fears of a broader conflict in the Middle East. 

Energy commodities surged in response, with Crude Oil WTI rising 5.60% and Brent Crude up 5.55%, reflecting heightened supply concerns from the region.

Oil exploration companies such as ONGC and Oil India saw their shares rise. As of 2:40 PM, Oil And Natural Gas Corporation Ltd. was up 1.30% at ₹251.10, while Oil India Ltd. was up 1.27% at ₹474.30. Since these companies produce and sell crude oil, a spike in global oil prices often boosts their revenue without a proportionate increase in cost, leading to better profit margins in the near term. That’s why rising crude prices are generally seen as positive for upstream players like ONGC and Oil India.

On the other hand, downstream oil marketing companies (OMCs), which are more sensitive to input cost pressures, declined. Shares of Indian Oil Corporation (IOCL) fell nearly 1.59%, while BPCL and HPCL also registered losses of around 3–4% intraday. The rise in crude prices typically hurts refining margins and increases under-recovery risks for OMCs, especially when retail fuel prices remain unchanged.

The market reaction comes amid warnings from global investment banks which suggested that oil could touch $120–$130 per barrel in an extreme escalation scenario, especially if Iran retaliates by disrupting traffic through the Strait of Hormuz, a key chokepoint through which 20% of the world’s oil supply flows.

With tensions rising and supply risks intensifying, Indian upstream oil firms stand to benefit in the short term. However, downstream players, aviation, and consumer sectors like paints and tyres may come under pressure if crude remains elevated.

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