The share price of oil companies like Oil and Natural Gas Corp., and Oil India Ltd. rose 2.14% and 2.88%, respectively, as global crude prices saw a hike amid the escalating Israel-Iran conflict.
Shares of ONGC touched a four-month high at Rs 256.89 apiece. They later pared gains to trade 1.81% higher at Rs 256.60. Oil India stock touched a five-month high at Rs 491.50 apiece, and later pared gains to trade 1.58% higher at Rs 485.15 as of 10:40 a.m.
According to Bloomberg, brent crude increased as high as 5.5% at open on Monday. As of 10:30 a.m. brent futures were trading in the green at $74.89.
Crude prices that have been on a decline saw some reversal in the last few months amid increasing geopolitical tensions in the Middle East. Brent crude had slipped below $59 in May, the lowest level since February 2021. However, it had risen over $78 in Friday's session.
Israel launched an attack on the South Pars gas field, which led to the halt of a production platform, after strikes on Iran's nuclear sites and military leadership last week, Bloomberg reported.
While an attack on Iran's gas-producing infrastructure is a concern, the biggest fear for the oil market centres on the Strait of Hormuz. Middle East producers ship about a fifth of the world's daily output through the narrow waterway, and prices could soar further if Tehran attempts to block the route, as per Bloomberg reports.
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