On Monday, shares of state-run oil marketing companies in India faced a significant selloff as crude oil prices surged past $100 per barrel. This spike was triggered by geopolitical tensions following the U.S. Navy's decision to restrict vessel movements linked to Iran in the Strait of Hormuz, a critical route for global oil trade, after negotiations between the U.S. and Iran collapsed. Major oil companies such as Hindustan Petroleum Corporation saw their shares drop by up to 3.97%, while Bharat Petroleum Corporation and Indian Oil Corporation fell by 3.41% and 3.01%, respectively. The rising crude prices pose a risk to the profitability of oil marketing companies (OMCs) in India, as fuel prices often adjust with a lag, leading to squeezed margins. Despite a ceasefire being technically in place, markets reacted swiftly to the renewed supply risks, with crude prices rebounding after an initial decline. Former U.S. President Donald Trump confirmed the naval blockade, indicating that high fuel prices could persist through the upcoming U.S. midterm elections. Meanwhile, Iran's Revolutionary Guards issued a warning against any foreign military presence near the Strait, heightening the risk of further escalation.