Shares of Oil and Natural Gas Corporation Limited and Oil India Limited fell sharply on 12 June, dragged down as crude oil prices plunged overnight after US President Donald Trump cancelled planned military strikes on Iran. ONGC touched a day low of Rs 246.65 on the NSE, while Oil India dropped to Rs 418.20.

On Thursday night, Trump posted on Truth Social that he had called off an imminent military escalation against Iran. He said discussions with Tehran had ‘been brought to the highest level of Iranian leadership and approved.’ 

He also claimed the US had ‘just made a great settlement of the war with Iran,’ adding that a formal signing could happen within days. That single announcement sent crude prices tumbling.

Brent crude fell $3.37, or 3.6%, to $89.73 a barrel. WTI crude dropped $3.20, or 3.6%, to $86.83. For companies like ONGC and Oil India, which earn money by producing crude oil, this matters directly. When oil prices fall, their revenues follow.

The Middle East conflict had kept crude prices high for months, with fears over the Strait of Hormuz, a critical route for global oil shipments, rattling energy markets. 

Trump’s announcement eased those fears overnight. Iran’s Fars news agency, however, said Tehran had not yet approved any deal text, leaving some uncertainty about whether a final agreement was truly close.

ONGC reported a net profit of Rs 10,819 crore in the quarter ended March 2026, up 45.6% from Rs 7,431 crore a year earlier, reflecting how strongly its earnings had benefited from elevated crude prices in recent quarters.

At 10:47 am on 12 June, ONGC was trading down 2.34% at Rs 246.70 on NSE. Oil India was down 2.50% at Rs 418.60.

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