Shares of Hindustan Petroleum Corporation Ltd (HPCL) declined sharply in Friday’s session, falling over 3% to ₹380.50, amid a surge in global crude oil prices following Israel’s military strikes on Iran. The stock had closed at ₹392.55 in the previous session.
The price correction comes as markets react to geopolitical tensions in the Middle East, with oil prices climbing over 10% in overnight trade. Brent crude futures for August were last seen trading 11.32% higher at $77.21 per barrel, while WTI crude futures rose 11.68% to $75.99 per barrel, according to Bloomberg.
Israel launched a large-scale pre-emptive strike on Iran early Friday, targeting multiple nuclear and military sites, escalating fears of retaliation that could disrupt oil infrastructure across the region. Analysts have flagged the Strait of Hormuz — a vital chokepoint for global oil shipments — as a potential flashpoint, given that around 20% of the world’s oil passes through it.
HPCL, a key downstream oil marketing company, is particularly sensitive to fluctuations in crude prices as they directly impact refining margins. Similar pressure was seen on peers like IOCL and BPCL, along with aviation and paint stocks, which face cost-side inflation risks.
With global markets pricing in heightened risk premium in energy, analysts warn that oil-linked stocks may remain volatile in the short term.
