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If the Iran-Israel conflict deepens, it is expected to drive crude prices higher to potentially hitting $100 per barrel in the near future. This may directly hit the stock of Oil Market Companies (OMCs) such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation (BPCL). These scrips may see increased volatility as higher crude prices not only put pressure on marketing margins but also lead to a rise in working capital requirements since OMCs import crude oil to meet the countrys petroleum products demand. As crude prices rise, they need to spend more on imports.

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