Bharat Petroleum Corporation Ltd (BPCL) shares declined by 3.8% to ₹306.55 in early Friday trading, reacting sharply to the surge in global crude oil prices triggered by Israel’s large-scale military offensive on Iran. The stock had closed at ₹318.65 in the previous session.
Brent crude futures climbed over 11% to $77.21 per barrel, while WTI crude crossed $75.99, up nearly 12%, as per Bloomberg data. The sudden jump followed reports that Israel launched a targeted strike on Iranian military and nuclear facilities, escalating tensions in the already volatile region.
Downstream oil companies like BPCL are sensitive to crude input costs. The sharp rise in oil prices is expected to hurt refining margins and increase marketing losses, particularly if retail fuel prices remain capped.
Analysts warned that further escalation, especially around the Strait of Hormuz—a key route for global oil shipments—could have deeper supply-side consequences. The route sees about 20% of the world’s oil pass through daily and any disruption would significantly tighten global supply.
BPCL’s peer stocks like HPCL and IOCL also saw declines, while oil explorers like ONGC traded higher on the back of rising crude. The situation remains fluid, with energy markets on edge amid geopolitical developments.
