Oil Prices Rise 3% As Iran War Disrupts Middle East Supply; BPCL, HPCL, IOC Slide Up to 5% As Brent Tops $82

M͏u͏mbai, 4 March 2026͏: Global͏ oi͏l prices climbed sharply on W͏e͏dnes͏day a͏s the ong͏oin͏g US-͏Isra͏eli war on I͏ran͏ disrupted en͏ergy supplies acr͏oss the M͏iddle͏ East, p͏ushin͏g ben͏chmarks higher an͏d intensifying pressur͏e o͏n Indian oil ͏marketing co͏mp͏anies e͏ven͏ as the Centre asserted tha͏t domestic ͏fue͏l supplies ͏re͏mai͏n stable.͏

Brent crude r͏ose $2.67 ͏o͏r͏ 3.3% to͏ $͏84.07 per barrel͏ by 065͏9͏ GMT,͏ aft͏er ͏closin͏g at͏ its highe͏st ͏l͏evel ͏s͏ince ͏January 2025͏.͏ ͏U͏S W͏est Texas Intermediat͏e ͏(WTI)͏ advanc͏ed $2.24 or 3% to $76.8͏0, marking͏ g͏ains ͏of around 5% or more over t͏he past two sessions. Brent had earlier r͏al͏lied about 12% i͏n͏ two days, the biggest jump͏ sinc͏e 2020, acc͏ording͏ to Bl͏oo͏mberg.

Brent At $84, WTI Near $77 After 5% Two-Day Rally

The immediate trigger behind the surge was intensified military strikes by US and Israeli forces across Iran, followed by Iranian retaliation targeting energy infrastructure in a region that accounts for just under a third of global oil production.

Iran also targeted vessels in the Strait of Hormuz, a crucial maritime corridor through which nearly 20% of global oil and liquefied natural gas (LNG) flows. Traffic through the Strait remains effectively closed, significantly tightening near-term supply expectations.

US President Donald Trump said the US Navy could escort oil tankers through the Strait if required and directed the US International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf. However, analysts indicated such measures may take time to implement.

Iraq Cuts 1.5 Million Barrels Per Day; Output At Risk

Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC), has cut output by nearly 1.5 million barrels per day, roughly half of its production, due to storage constraints and lack of export routes. Officials indicated that the country’s nearly 3 million barrels per day output could be shut within days if exports do not resume.

In the United States, crude inventories rose by 5.6 million barrels last week, according to market sources citing American Petroleum Institute figures, well above analysts’ expectations of 2.3 million barrels. Official government data is due later on Wednesday.

India Holds 25 Days of Crude Stocks

Amid the West Asia turmoil, government sources said India has approximately 25 days of crude oil and refined product stocks. Authorities are exploring alternative sources for importing crude oil, LPG and LNG.

Union Petroleum and Natural Gas Minister Hardeep Puri reviewed supply conditions with senior officials earlier this week. Officials stated there are no immediate plans to raise petrol or diesel prices, and retail fuel rates have remained unchanged since April 2022.

India imports nearly 88% of its crude oil requirement, making global price movements critical for its import bill and inflation outlook. Over 40% of India’s crude imports transit through the Strait of Hormuz.

Petrol and Diesel Prices Across Major Cities

As of 4 March 4, 2026, retail fuel prices across major Indian cities remain unchanged. In New Delhi, petrol is priced at ₹94.77 per litre and diesel at ₹87.67 per litre. In Mumbai, petrol costs ₹103.54 per litre and diesel ₹90.03 per litre. Kolkata records petrol at ₹105.41 per litre and diesel at ₹92.02 per litre. In Chennai, petrol is ₹100.80 per litre, while diesel is ₹92.39 per litre.

Ahmedabad reports petrol at ₹94.47 per litre and diesel at ₹90.14 per litre. In Bengaluru, petrol stands at ₹102.96 per litre and diesel at ₹90.99 per litre. Hyderabad shows petrol at ₹107.50 per litre and diesel at ₹95.70 per litre. Chandigarh has petrol priced at ₹94.30 per litre and diesel at ₹82.45 per litre.

Officials stated that the government continues to follow a balanced pricing approach, permitting state-run oil marketing companies to absorb periods of volatility when necessary

BPCL, HPCL, IOC Fall Up to 5% As Crude Soars

Shares of Indian oil marketing companies declined for a second straight session amid the crude rally. Oil marketing companies are considered sensitive to crude price movements as elevated prices can compress refining margins, increase working capital needs and raise borrowing costs.

As of 1:49 PM IST, on the NSE, Bharat Petroleum Corporation Limited fell as much as 4.15% to ₹359.25 per share, while Indian Oil Corporation slipped 4.59%, and Hindustan Petroleum Corporation Limited declined up to 5.39%.

Over the past two sessions, BPCL and HPCL have fallen 7.2% and 8.1%, respectively, while IOC has dropped 8.6%. The Nifty Oil and Gas index was down 3.2%, compared to a 1.7% fall in the Nifty50 index.