DH Latest NewsDH NEWSLatest NewsIndiaNEWSInternational

Impact of Israel-Iran tensions on Indian oil companies like ONGC and Oil India

Escalating tensions in the Middle East, particularly following Iran’s recent attack and Israel’s threats, are generating global repercussions. As concerns about inflation rise and stock markets fluctuate, several Indian companies could experience losses due to their ties to Iran and Israel. In 2023, India conducted approximately Rs 1.1 lakh crore in trade with both nations, with Rs 20,800 crore in trade with Iran, mainly comprising exports of tea, coffee, basmati rice, and sugar, and Rs 89,000 crore with Israel. Prominent Indian firms like TCS, Infosys, and Adani Ports have significant investments in these countries.

The ongoing conflict is expected to impact numerous companies, particularly with crude oil prices rising—Brent crude reaching around $90 per barrel and WTI at $85 per barrel. However, this situation may also lead to increased demand for basmati rice from Arab countries, potentially benefiting certain businesses. In the oil sector, government-owned ONGC Videsh Limited stands to gain from higher crude prices, which could enhance its profits and revenue. Similarly, Oil India Limited could see improved earnings and margins due to the same trend.

Other companies may also benefit from these developments. Indraprastha Gas Limited, a major gas distributor, could profit from an increase in consumers switching to CNG as petrol and diesel prices rise. Additionally, Engineers India, a leading civil engineering firm, might indirectly benefit from rising crude prices as it constructs pumping and compressor stations for oil and petroleum products. Overall, while many companies could face challenges, certain sectors may find opportunities amid the ongoing geopolitical tensions.

shortlink

Post Your Comments


Back to top button