The escalating geopolitical tensions between Israel and Iran have led to a sharp rise in crude oil prices, benefiting oil producers such as ONGC and Oil India. On June 13, 2025, amidst rising crude prices, shares of both ONGC and Oil India gained up to 4%, making them stand out in an otherwise challenging stock market environment.
This article will explore how the rise in crude oil prices – triggered by the ongoing conflict in the Middle East – has influenced the stock prices of ONGC and Oil India, alongside its broader market implications.
Why did crude oil prices surge?
On June 13, 2025, crude oil prices surged sharply after Israel launched a military strike against Iran, escalating tensions in the region. This event spooked the market and raised fears of a supply disruption, particularly through the Strait of Hormuz, a vital shipping route for global oil supply.
- Brent crude prices jumped by 9%, reaching $75.61 per barrel, while WTI crude increased by 8.55%, trading at $75.35 per barrel.
- The surge in crude prices is a direct result of the Israel-Iran conflict, with investors concerned about the potential for further disruptions in the oil supply.
As crude prices rose, ONGC and Oil India, both major oil producers, saw their stock prices benefit from the increase in oil prices.
ONGC and Oil India share price movement
Both ONGC and Oil India are classified as upstream oil producers, meaning they benefit when crude oil prices rise, as they can sell oil at higher prices. On June 13, 2025, the impact of rising crude prices was reflected in the performance of these stocks.
ONGC opened at ₹255.55, up more than 3% compared to the previous day’s closing price of ₹247.88. The stock rose further to an intraday high of ₹255.9.
Oil India opened at ₹480 and hit an intraday high of ₹486, showing a rise of around 3% in early trade.
This positive movement in stock prices reflects the benefit that oil producers gain from higher crude prices, as it directly boosts their revenues and earnings potential.
Impact on crude-sensitive sectors
While ONGC and Oil India enjoyed gains, other sectors that are sensitive to crude oil prices, such as oil marketing companies (OMCs) and paint manufacturers, faced significant losses. As crude prices rise, the cost of oil-based products also increases, putting pressure on companies that rely on oil derivatives.
Oil Marketing Companies (OMCs)
Shares of Oil Marketing Companies (OMCs) such as BPCL, IOC, and HPCL fell sharply on June 13, 2025, due to rising crude prices.
BPCL saw a drop of 4%, while IOC and HPCL declined by around 3-4% each.
Paint Manufacturers
Crude oil is a key input for paint manufacturers, and higher oil prices directly impact their production costs. As a result, companies like Asian Paints and Berger Paints saw declines in their stock prices.
| Stock | Price Change (%) | Stock Price (₹) |
| Asian Paints | -1.18% | ₹2,194 |
| Berger Paints | -1% | ₹566.00 |
Asian Paints dropped by 1.18%, and Berger Paints fell by around 1% as investors reacted to the rise in crude oil prices.
What does the future hold for oil prices?
The rise in crude oil prices is largely driven by the Middle East conflict, but it also raises questions about the long-term direction of oil prices. Geopolitical risks, such as potential disruptions in the Strait of Hormuz, could keep crude oil prices elevated for the near future.
Experts suggest that the Strait of Hormuz, which handles around 20% of the world’s oil traffic, is at risk if tensions between Israel and Iran continue to escalate. This could lead to further price hikes, benefiting oil producers but hurting industries that rely on oil-based products.
Conclusion
The Israel-Iran conflict has significantly impacted crude oil prices, with ONGC and Oil India emerging as beneficiaries due to their role as oil producers. As crude oil prices surged by 9% on June 13, 2025, both companies saw their stock prices climb by up to 4%. However, crude-sensitive sectors, such as oil marketing companies and paint manufacturers, faced declines due to rising production costs.
Looking forward, if the geopolitical tensions continue, oil prices could remain volatile, and investors in both oil stocks and crude-sensitive sectors should monitor the situation closely.
