This comes as stocks took a hit early last week as tensions between Iran and Israel-U.S. escalated, with no sign of a diplomatic solution. Supply shortages emerged in several cities, including Mumbai and Bangalore, with restaurants in some areas warning of possible closures due to insufficient fuel.
Trump told CBS News on Monday that he believed the war against Iran was “very complete” and that Washington was “far ahead” of its original estimated schedule of four to five weeks. He also told reporters that his administration is lifting sanctions on some countries as part of efforts to stabilize the oil market.
“So we have sanctions on some countries. We will remove these sanctions until the strait is lifted,” he said without giving further details.
“It’s going to end soon, and if it starts again, they’re going to be hit harder,” Trump added.
Following these comments, crude oil prices fell sharply after falling below the $100 mark for the first time since the start of the Russia-Ukraine war in 2022.
India imports more than 60% of its domestic LPG needs, and about 85-90% of these imports pass through the Strait of Hormuz. The country consumed 31.3 million tonnes of LPG in the fiscal year, of which only 12.8 million tonnes was produced domestically. Earlier last week, the Indian government invoked emergency powers and directed oil refiners to ensure there is no shortage of LPG for domestic consumers due to supply constraints due to rising West Asian geopolitics.
Shares of Petronet LNG rose about 5% to trade at 291.5 rupees apiece. The stock fell more than 9% earlier last week after the company issued force majeure notices to Qatar Energy and others because ships were unable to safely transit through the Strait of Hormuz. The prospect of traffic resuming through the critical intersection seems to have fueled sentiment.
Meanwhile, shares of Gujarat Gas rose around 1.6%, GAIL (India) rose more than 2%, while Indraprastha Gas Limited rose more than 1%.
((rejection: The suggestions, recommendations, views and opinions given by the experts are their own and do not represent the views of The Economic Times.)
