The oil and gas sector stocks are in focus today, April 13. But what has suddenly changed?
A sharp spike in global crude prices, combined with rising geopolitical tension, has again brought energy stocks into the spotlight.
In today’s trading session, the Nifty Oil and Gas index plunged 2.6% in early trading hours, with broad-based selling across the sector.
Hindustan Petroleum Corporation led the decline, falling 4.5%, followed by Petronet LNG down 4% and Bharat Petroleum Corporation slipping 4%.
Losses were also sharp in Aegis Logistics at 3.20% and Mahanagar Gas at 3.17%.
Among other stocks, Indian Oil Corporation declined 3.02%, Chennai Petroleum Corporation fell 2.76% and Reliance Industries dropped 2.75%. Meanwhile, Gujarat State Petronet was down 2.11%, Adani Total Gas slipped 1.82%, Oil and Natural Gas Corporation declined 1.75%,
Indraprastha Gas fell 1.73%, GAIL was lower by 1.70%, while Castrol India and Oil India saw relatively smaller cuts of 0.80% and 0.76%, respectively.
Let’s take a look at the key reasons why this sector is in the spotlight today –
Crude jumps after Trump’s Hormuz blockade announcement
The immediate trigger behind the rally in oil prices has been the sharp escalation in tension between the US and Iran.
Peace talks between the two countries failed to produce any concrete outcome over the weekend. This has raised concerns about further conflict.
Furthermore, matters intensified after Donald TrumpDonald Trump announced a blockade of the Strait of Hormuz, a key global oil transit route.
This latest development has pushed global benchmark Brent crude above $103 per barrel. Similarly, the US WTI crude futures climbed to around $104.
Why the Strait of Hormuz matters so much
The Strait of Hormuz is a key shipping route. It is one of the most important arteries of the global energy system.
Nearly 20% of the world’s oil and gas supply passes through this narrow stretch. This makes it highly sensitive to any disruption.
While some oil tankers managed to pass through over the weekend, uncertainty around LNG shipments remains high. This has also pushed European gas prices sharply higher, with benchmark futures jumping around 17% during early Asian trading.
Iran, however, has pushed back against the US move. Its Revolutionary Guard stated that the strait remains under its “full control” and is open for non-military vessels, warning that military ships would face a “forceful response.”
Writing on X, Foreign Minister Abbas Araghchi said Iran had negotiated with the US in “good faith” for an end to the war. “But when just inches away from “Islamabad MoU”, we encountered maximalism, shifting goalposts, and blockade,” he wrote.
What it means for oil and gas stocks
For energy companies, rising crude prices typically improve revenue visibility, especially for upstream players involved in exploration and production.
However, the broader impact depends on how long the price surge sustains and whether supply disruptions worsen.
At the same time, volatility also increases risk for downstream companies, as higher crude prices can squeeze margins if not passed on to consumers.
Over the weekend, US President Donald Trump has ordered a naval blockade of the strait. In a post on Truth Social, Trump said, “Effective immediately, the United States Navy…will begin the process of blockading any and all ships trying to enter, or leave, the Strait of Hormuz.” He added that the move aims to counter what he described as “world extortion” by Iran.
Reiterating his stance, he said, “Iran will never have a nuclear weapon!” He also issued a strong warning: “Any Iranian who fires at us, or at peaceful vessels, will be blown to hell!” and added that US forces are “locked and loaded.”
The response from Iran has further raised the stakes. Iran’s Islamic Revolutionary Guard Corps claimed control over the strategic waterway, indicating that the situation remains highly volatile. In a statement, it said: “All traffic…is under the full control of the armed forces.”
The failure of ceasefire talks and uncertainty ahead of the April 22 deadline has added another layer of unpredictability.
US Vice President JD Vance indicated that Washington’s core objective, ensuring Iran does not pursue nuclear weapons remains unresolved.