ONGC, Oil India gain; HPCL, BPCL, Indian Oil shares fall on spike in crude price amid Israel-Iran war

Shares of companies with high dependence on crude oil were in limelight in trade on Monday, June 16, as price of Brent Crude futures surged as much as 5% to hit an intraday $77.99 in international markets following escalating tensions between Iran and Israel.

Shares of oil exploration companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) rose over 1.5% while oil marketing companies (OMCs) like Bharat Petroleum, Indian Oil and Hindustan Petroleum were trading lower by around 0.5%. Oil exploration companies are likely to gain from higher crude prices while refining margins of OMCs will get negatively impacted by the same.

Meanwhile, paint, tyre and aviation sector shares, which are also highly dependent on movement of crude price, were trading on a mixed note. Berger Paints shares rose 0.12%, Asian Paints advanced 0.35%, IndiGo Paints declined 1% and Kansai Nerolac fell 0.6%.

From the tyre space, MRF declined 0.3%, Apollo Tyres fell 0.95%, Ceat dropped 1.81% and Balkrishna Industries fell 0.9%.

InterGlobe Aviation rose 1% and SpiceJet was trading on a flat note.

Brent futures surged as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.

Iranian missiles struck Israel's Tel Aviv and the port city of Haifa on Monday, destroying homes and fuelling concerns among world leaders at this week's G7 meeting that the battle between the two old enemies could lead to a broader regional conflict, according to news agency Reuters.

An exchange of strikes between Israel and Iran on Sunday resulted in civilian casualties, with both militaries urging civilians on the opposing side to take precautions against further strikes. The latest developments have stoked concerns about disruptions to the Strait of Hormuz, a vital shipping passage, Reuters report added.

Oil could hit $130, says JP Morgan

In a note published Thursday, JP Morgan said it sees oil averaging $60 in 2026 but flagged $120–$130 per barrel as a potential range in the event of worst-case outcomes—namely, military conflict and a closure of the Strait of Hormuz, through which one-fifth of global oil flows.

JP Morgan notes that while escalations in conflict could lead to meaningful supply disruption—particularly if Iran’s 2.1 million bpd of exports are cut off.

The Strait of Hormuz is one of the world’s most critical chokepoints for oil transport. About 20% of global oil consumption passes through it daily — mainly from Saudi Arabia, the UAE, Iraq, Kuwait, and Qatar.

Iran has historically threatened to block or disrupt the Strait of Hormuz.