Oil marketing companies (OMC) shares rose up to 2.5% in early morning trading on Friday, April 10, as crude oil prices retreated from recent highs ahead of the US-Iran ceasefire talks scheduled to take place in Pakistan this weekend. According to Mint, shares of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation (HPCL) all posted gains as investors responded positively to the easing of Middle East tensions. The rally was further supported by positive sentiment in the Indian stock market, providing additional momentum to the oil sector stocks.
Crude oil prices have pulled back from recent highs as a possible breakthrough in the Middle East war and hopes of reopening the Strait of Hormuz, which accounts for nearly 20% of global oil passage, have eased supply concerns. As reported by Mint, both Brent and WTI contracts have lost 11% so far this week, marking the biggest weekly decline since June 2025. At the time of writing, Brent crude prices had pulled back from the earlier rise of 0.8% and were up 0.2% around $96/bbl. The retreat comes after oil prices had risen by over 50% last month and weighed heavily on PSU oil stocks, making the current pullback particularly significant for market participants.
Global stock markets experienced a dramatic surge on Wednesday following President Trump's announcement of a two-week ceasefire with Iran. According to The Economic Times, the S&P 500 leaped 2.5%, the Dow Jones Industrial Average gained 1,126 points or 2.4%, and the Nasdaq composite rose 2.3% as of 12:30 am Thursday. European and Asian markets also posted even bigger gains, with the rally coming less than 90 minutes before Trump's deadline for Iran to reopen the Strait of Hormuz and allow oil tankers to exit the Persian Gulf.
The two-week US-Iran ceasefire has significantly eased fears of a prolonged Middle East conflict that had disrupted oil and gas flows through the Strait of Hormuz. According to The Economic Times, the agreement has brought down crude oil prices and improved India's energy outlook. Iran has agreed to temporarily reopen the key waterway under the ceasefire terms, with the Revolutionary Guards issuing safety instructions for transit, including new entry and exit paths. The development has provided relief to oil marketing companies that had been under pressure from higher oil prices, with the IEA chief describing the current oil and gas crisis as more severe than the crises of 1973, 1979 and 2022 combined.
The ceasefire has enabled the first India-flagged LPG vessel to reach Jawaharlal Nehru Port Authority since the war began, carrying 15,400 tonnes of essential LPG. As reported by The Economic Times, this marks a significant milestone in supply chain recovery. The vessel's safe arrival ensures steady supply of vital energy to India, addressing concerns about disruptions to restaurant operators and food delivery platforms that rely on LPG for kitchen operations. The recovery comes as fresh anxiety over supplies from Saudi Arabia has capped downside in crude oil prices, highlighting the complex nature of global energy supply chains.
