Oil and gas major Petronet LNG's stock slumped as low as 4.40% on the NSE after QatarEnergy it is preparing force majeure on liquefied natural gas shipments through mid-October.
Force Majeure refers to a clause that excuses one or both parties to meet supply obligations is due to events beyond their control. The shares pared some losses to trade 3.70% lower at Rs 269.30 as of 3:12 p.m.
Crude oil prices rose for the fifth day in a row, crossing months' high of and nearing the $100 per barrel mark. The surge comes on the back of fears that disruption to global oil supplies could spread beyond the Strait of Hormuz.
On Thursday, Yemen's Houthis said that they struck two Saudi oil tankers opening up a new front targeting vessels carrying Saudi oil in the Bab el-Mandeb strait and trying to impose a naval blockade of Saudi Arabia.
The Hormuz front has also been strained with new tensions between the US and Iran. American defense forces said that they completed a 12th consecutive night of strikes on Iran, hours after US President Donald Trump pledged to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz.
Trump has threatened that Iran "will pay a big price" for the death of American soldiers.
On the Other hand, Iran's Revolutionary Guards (IRGC) had informed that an oil tanker caught fire after an explosion while attempting to sail through a mined route in the southern area of the Strait of Hormuz near the coast of Oman and that two others had turned back.
IRGC added that the strait was under their control and "completely closed" while US activities continued in the region. They warned that no tanker would be allowed to enter or leave without coordination with Iran.
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