Shares of public sector undertakings (PSUs) ONGC and Oil India surged on Friday, June 13, 2025 even as the stock market tumbled. The surge in prices of these stocks comes amid a sharp spike in Brent crude oil prices after Israel attacked Iran's capital.
The shares of Oil India Ltd opened gap up with a gain of 2.8 per cent at Rs 481.15 on the BSE against the previous close of Rs 468.05. It gained further and touched the high of Rs 485.80, a gain of 3.79 per cent from the last close. The surge in price comes as the stock witnessed a spurt in volume by over 2.75 times today. At the time of writing the story, around 7.55 lakh shares changed hands. This is higher than the two-week average volume of 2.74 lakh.
Similarly, the shares of ONGC (Oil and Natural Gas Corporation Ltd) also opened gap up with a gain of 2.72 per cent at Rs 254.55 against the previous close of Rs 247.80. The counter hit the intraday high of Rs 255.40.
Brent Crude Price Surges
The stocks are on the rise amid a sharp spike in Brent crude oil prices. Global oil benchmark Brent crude jumped 9.33 per cent to USD 75.83 a barrel.
Why Brent Crude Price Is Rising?
The prices of crude oil are on the rise post-attack on Iran because this country has both the geographic leverage and military capability to disrupt or block the Strait of Hormuz, one of the most critical chokepoints in global energy trade.
"According to the U.S. Energy Information Administration (EIA), approximately 20 per cent of the world’s oil supply, around 20.9 million barrels per day passes through this narrow waterway, with nearly 83 per cent of it destined for Asian markets. Any threat to the free flow of oil and gas through this strait poses a significant risk to global energy security. This vital corridor connects the Persian Gulf to the Indian Ocean. As a result, markets are already pricing in potential supply disruptions. In extreme scenarios, analysts warn that as much as 20 million barrels per day could be affected if the situation escalates," said Ankit Patel, Partner at Arunasset Investment Services.
According to the expert, the extent to which global powers can dissuade Iran from blocking this vital passage will determine the scale of impact on oil markets going forward. Even without further escalation, the geopolitical risk premium on oil is likely to persist.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
