Crude Oil Soars 7% After Israel-Iran Clash; IGL, GAIL, BPCL, HPCL Share Price Tumble

A sudden spike in crude oil prices following escalating tensions between Israel and Iran has rattled Indian oil and gas stocks. Brent crude prices jumped nearly 7% after Israel carried out preemptive airstrikes on Iran’s nuclear sites. As oil supply fears grew, downstream oil marketing companies (OMCs) in India took a sharp hit in early trade on June 13, 2025.

Nifty Oil & Gas Index Slips Over 1.4%

The Nifty Oil & Gas Index fell more than 1.4%, sliding to 11,318.10 during the morning session. Indraprastha Gas Ltd (IGL) was among the worst hit, falling nearly 5% to ₹193.12 due to fears of rising input costs.

Downstream Oil Companies Under Pressure

Downstream oil firms like BPCL and HPCL, which refine and sell fuel, were badly affected. BPCL dropped by 6%, HPCL lost over 3% to ₹380.25, and GAIL slipped 3.6%. Several other oil and gas stocks also saw declines of more than 2% in early trade.

Upstream Oil Stocks Gain on Higher Crude Prices

On the other hand, companies involved in oil exploration and production gained. Oil India Ltd (OIL) rose 3.8% to ₹486, while ONGC was up 3.2% to ₹255.95. These companies benefit when crude prices rise, as they sell oil at higher rates.

Understanding Upstream vs Downstream

Upstream oil firms like ONGC and Oil India explore and produce crude oil. Downstream companies like HPCL and BPCL refine crude into usable fuels like petrol and diesel. When crude prices surge, upstream firms gain, while downstream companies face pressure due to higher raw material costs.

Also Read: Bajaj Finance Set June 16 as Record Date for Stock Split!

Israel-Iran Conflict Triggers Global Concerns

The price spike was triggered after Israel attacked Iran’s nuclear and military facilities. Israel’s defence minister warned of an imminent missile or drone counterattack from Iran, further escalating geopolitical risks and fueling supply concerns in the global oil market.

Conclusion

The geopolitical unrest in West Asia has jolted global oil markets, sending crude prices higher and pressuring Indian oil companies. While upstream firms like ONGC and Oil India benefited, the sharp fall in downstream OMC stocks reflects growing worries about margins and input costs. Investors should stay cautious as the situation unfolds.

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