Oil prices jump 5% after Donald Trump’s speech, may head toward $120 as US–Iran war escalates - Mint

Rising crude oil prices are a significant headwind for India, a major oil importer, impacting inflation and the current account deficit. This surge could trigger broader market corrections and shift sector preferences.

Consider shorting OMCs and airlines, while selectively looking for opportunities in upstream oil and gas producers, maintaining strict stop-losses.

For Indian markets, this story mainly matters for IOC, ONGC, RELIANCE and the Oil & Gas, Aviation, Logistics pocket. The current signal is bearish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Higher crude oil prices increase input costs for oil marketing companies, impacting refining margins and profitability. As an upstream oil producer, higher crude oil prices generally lead to increased realizations and profitability. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Oil prices jumped 5% after Donald Trump’s speech.
• •Oil prices may head toward $120 as US–Iran war escalates.
• •Crude oil crossed $106/barrel after Trump's comments.
• •Sensex slumped over 1,400 points, Nifty below 22,250, partly due to rising crude oil prices.
• •Risk flag: Geopolitical developments are highly unpredictable and can reverse quickly.