Shares of major Oil Marketing Companies rallied strongly on Monday, jumping up to 6%. These gains came after the government hiked fuel prices in the country for the fourth time in 10 days, making petrol Rs 2.61 per litre costlier and diesel by Rs 2.71 per litre.Shares of Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) extended gains, supported by a broader sentiment lift after global crude prices slipped to a two-week low amid easing geopolitical tensions between the United States and Iran.IOC shares rose around 4% to touch Rs 145, while HPCL jumped nearly 6% to Rs 412.55 on the BSE. BPCL also strengthened, climbing over 4.5% to an intraday high of Rs 309 per share.Shares of Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) ended higher in Monday’s trade, tracking a sharp decline in global crude prices to a two-week low amid easing geopolitical tensions between the United States and Iran.IOC gained around 4% to touch an intraday high of Rs 145, while HPCL surged nearly 6% to Rs 412.55 on the BSE. BPCL also firmed up, rising over 4.5% to an intraday high of Rs 309 per share.On the global front, Brent crude futures dropped $4.71, or 4.55%, to $98.83 per barrel, while US West Texas Intermediate (WTI) crude fell $4.57, or 4.73%, to $92.03 per barrel. Both benchmarks had earlier touched their lowest levels since May 7 during the session.The decline followed remarks from US President Donald Trump, who said Washington and Tehran had “largely negotiated” a memorandum of understanding on a peace agreement. He also indicated that the Strait of Hormuz could be reopened under the proposed deal.Last week, crude prices had already seen sharp losses, with US oil falling more than 8% and Brent declining over 5%, after Trump said he had cancelled planned airstrikes on Iran to allow room for diplomatic engagement. Despite the recent correction, oil prices remain more than 30% higher since the US and Israel launched strikes on Iran on February 28.Meanwhile, the Middle East conflict and disruptions due to the Strait of Hormuz are inching closer to 3 month mark. The crisis began on February 28, when the US and Israel launched joint strikes on Iran. After the attack, Tehran retaliated by tightening its noose on the crucial Strait of Hormuz, disrupting energy supplies across the world.
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