Prime͏ Research Daily: Oil Surges Past $100 as Iran Crisis Disrupts Strait of H͏ormuz͏, Gl͏obal Markets Tumb͏l͏e

Mumbai, March 12:͏ Escalating military co͏n͏fli͏ct o͏ff Iran͏’s coast ͏has drive͏n Bre͏nt crude t͏o $100 a b͏arrel and U͏S crude ͏to $95͏, triggeri͏ng a fr͏esh wave of sel͏li͏ng across global equity m͏arkets as investors br͏ace for a prolon͏ged energy shock. ͏Th͏e att͏a͏ck on ͏commerc͏ial ͏vessels near t͏he Strait of͏ ͏Ho͏rmuz has effectivel͏y halted transit thro͏ug͏h the ͏world’s͏ ͏most cr͏itical o͏il ͏pa͏ssag͏eway, r͏em͏oving͏ approx͏im͏a͏tely 20 million ͏barrel͏s per day from global supply.

US Futures Deepen Losses as Oil ͏Rally͏ Intensifies in After-H͏our͏s T͏ra͏di͏ng

Dow futures plunged nearly 500 poin͏t͏s (1 per c͏ent) late Wedne͏sday, with S&P ͏500 and Nasda͏q 100 futures ͏eac͏h droppin͏g 0.9 pe͏r cent͏, as the extension of crude’͏s surge͏ compounded inflati͏on fears. T͏he l͏os͏ses followed a͏ mixed ses͏sion on ͏Wall Street͏ ͏where the N͏asdaq eked out a ͏19-͏point g͏ai͏n to 22,716, while the S&P 500 slipped 5͏ p͏oints to 6,͏775͏ and the Dow slid ͏28͏9͏ poin͏ts t͏o 47,4͏17. Tre͏asury yields surged alongside oil prices, raising͏ concerns ab͏out o͏verheating acros͏s marke͏t segments includ͏ing private cre͏dit and artificial int͏e͏llig͏ence-related͏ i͏n͏vestments.

IEA Unleashes Record 400 Million Barrel Reserve Release to Stabilise Prices

The International Energy Agency coordinated a historic emergency release of up to 400 million barrels from strategic stockpiles, dwarfing the 182 million barrels deployed after Russia’s invasion of Ukraine in 2022. All 32 IEA member nations voted unanimously in favour of the intervention, with the United States committing 172 million barrels beginning next week. Analysts caution, however, that the measure offers only temporary relief, and only genuine military de-escalation can sustainably reduce prices.

February CPI Matches Forecasts at 2.4%但 Economists Warn of Backward-Looking Reading

The Bureau of Labour Statistics reported February CPI rose 0.3 per cent month-over-month and 2.4 per cent year-over-year, both in line with forecasts. Core inflation came in at 2.5 per cent annually, also matching expectations. Economists cautioned, however, that the reading is backward-looking: the Iran-driven oil shock has since materially altered the inflation trajectory, with food and fertiliser prices also coming under pressure.

Nifty Closes at 23,866, Weakest Since April 2025, as Selling Pressure Intensifies

India’s Nifty resumed its downtrend, shedding 395 points or 1.63 per cent to close at 23,866, its weakest closing since 17 April 2025. After opening lower by 30 points, the index faced relentless selling pressure throughout the session, finishing near its intraday lows. The Sensex plunged 1,342.3 points (1.72 per cent) to 76,864. Short build-up was evident in both Nifty and Bank Nifty futures, with open interest rising 5.52 per cent and 6.70 per cent respectively. The Nifty Put-Call ratio fell to 0.83 from 1.03, indicating bearish sentiment.

Bank Stocks Lead Losses as HDFC Bank, Axis Bank and ICICI Bank Top Contributors to Nifty Decline

HDFC Bank contributed negative 50.43 points to the Nifty decline, followed by Axis Bank (minus 38.14 points) and ICICI Bank (minus 31.3 points). Bajaj Finance slumped 4.91 per cent to ₹893.7, while Axis Bank dropped 4.48 per cent to ₹1,255.8, making them the top losers among Nifty constituents. In contrast, Sun Pharma gained 0.72 per cent to ₹1,825.9, Jio Finance rose 1.14 per cent to ₹238.7, and Coal India advanced 0.72 per cent to ₹446.8, bucking the broader downtrend.

Oracle Posts Strongest Quarter in 15 Years on AI-Driven Cloud Revenue Surge

Oracle’s total cloud revenue rose 44 per cent year-over-year to $8.9 billion, with cloud infrastructure revenue surging 84 per cent to $4.9 billion, driven by artificial intelligence training and inferencing demand. The company raised its fiscal year 2027 revenue guidance to $90 billion and reported remaining performance obligations of $553 billion — up 325 per cent year-over-year — reflecting contracted AI infrastructure demand anchored by its $300 billion Stargate deal with OpenAI.

US Launches Section 301 Trade Probes Against 16 Nations Including India and China

The Trump administration launched a new trade investigation into excess industrial capacity in 16 major trading partners, a move that could lead to new tariffs by summer. US Trade Representative Jamieson Greer said the probe targets China, the European Union, India, Japan, South Korea, Mexico, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. Canada was notably absent from the list. The investigation could result in tariffs under Section 301 of US trade law.

US Gasoline Prices Cross $3.50 Per Gallon as Iran Conflict Stokes Supply Concerns

The national average retail price of gasoline crossed $3.50 a gallon this week, hitting its highest since May 2024, according to price tracking services AAA and GasBuddy. Disruptions to Middle Eastern oil exports through the Strait of Hormuz have caused a surge in fuel prices globally, threatening to pinch consumer wallets and derail economic activity. The price spike poses political risks for the Trump administration ahead of November’s midterm elections.

Russia Crude Imports Surge 50% as India Secures Alternative Middle East Supplies

India’s crude oil imports from Russia surged by 50 per cent in March, a compelling response to the instability wreaking havoc in the Middle East. With the urgency to secure alternative supplies, New Delhi is prioritising its energy needs against the backdrop of geopolitical turmoil. The development comes as the Ministry of Petroleum and Natural Gas prioritised supply to domestic pipeline natural gas and compressed natural gas sectors, advising curtailment of gas supplies to industrial and commercial customers.

Ashok Leyland Invests ₹500 Crore in Chennai Battery Pack Facility for EV Push

In a bold step towards sustainable transportation, Ashok Leyland announced a substantial investment of ₹500 crore for a state-of-the-art battery pack production facility on the outskirts of Chennai. Following a successful groundbreaking ceremony, this initiative bolsters the company’s ambitions in the electric vehicle sector and aligns with India’s commitment to achieving net-zero emissions. The Hinduja Group flagship manufactures commercial vehicles from its headquarters in Chennai.

Jindal Steel Emerges Preferred Bidder for Odisha Iron Ore Block with 50 Million Tonne Reserves

Jindal Steel emerged as the preferred bidder for the Thakurani A1 iron ore block in Odisha, committing a premium of 101.20 per cent to secure the asset. The mine holds over 50 million tonnes of iron ore, bolstering the company’s raw material supply as it expands its Angul plant capacity. The acquisition strengthens the NSE-listed steel major’s vertical integration amid rising global commodity prices.

Dilip Buildcon Secures ₹1,850 Crore Transmission Project in Karnataka from RECPDCL

Dilip Buildcon secured a letter of intent worth ₹1,850 crore from REC Power Development and Consultancy to develop a 400 kV substation at Mekhali along with associated transmission lines in Belagavi district, Karnataka. The project adds to the construction and engineering firm’s order book, which focuses on infrastructure development across roads, bridges and power transmission segments.

Omnitech Engineering Wins $20 Million Annual Contract from Weatherford Products

Omnitech Engineering secured a contract through Master Purchase Agreement from Weatherford Products GmbH, valued at approximately US$20 million plus GST per year for five years – totalling approximately ₹920 crore plus GST. The order underscores the engineering company’s capabilities in supplying specialised equipment to the global energy sector.