Crude Oil Price Races To $100; How Will Elevated Oil Impact Indian Stock Market, Petrol, Diesel, LPG, PNG, CNG

Crude oil prices have continued a relentless rise over the past few days. Now, both US WTI crude and Brent crude are at 3-month highs, moving closer to the $100-per-barrel mark. This is due to fresh attacks exchanged between the US and Iran. Despite the heightened tensions in the Strait of Hormuz, roughly 7 million barrels per day of crude and refined products have been transitioning.

Nonetheless, rising crude oil prices pose a massive threat to the global economy, and India will face the brunt as well. India's crude oil import dependency reached 88.7% in the last fiscal year, and the first half of 2026 has also witnessed a significant rise. Let's understand how rising crude oil could impact the Indian stock market and petroleum products like petrol, diesel, LPG, PNG, and CNG.

Crude Oil Price Closer To $100 Per Barrel

In the early hours of September 8, 2026, US WTI crude oil futures traded above $92.4 per barrel, which is hovering at its highest level in 3 months. Meanwhile, Brent crude price has remained elevated above $97 per barrel, just $3 away from hitting $100 per barrel. Brent is currently at 6-weeks high.

In two sessions straight, crude has gained nearly 2%. On a month-on-month basis, US WTI and Brent have surged 13% and 11%, respectively. Since the conflict between the US and Iran began in late February 2026, oil prices have gained 30%. Due to the majority of gains arriving because of the West Asia war, crude oil prices' year-on-year performance has skyrocketed by 48% in US WTI and over 46% in Brent.

Among the latest developments, Iran is looking to sign a deal with Oman for shipping through the chokepoint, the Strait of Hormuz, soon. This fuels concerns over Tehran's rising control in the key waterway. At least 20% of global oil and gas supply is shipped through Hormuz. On the other hand, the US, whose naval forces have continued to blockade Iranian ports to stop exports from the Islamic regime, is focused on returning waterway transit at Hormuz to pre-war levels.

Markets were also focused on how the US might respond after striking Iranian tankers in the strait over the weekend. Oil prices surged nearly 10% last week as renewed US-Iran fighting raised fears of further disruptions to energy supplies from the Middle East. Both sides stepped up attacks over the weekend, targeting ships and military vessels around Hormuz, as per Trading Economics.

One of the companies that took the blow of the latest crossfire between US and Iran is Saudi Aramco's facilities in Jazan near the Red Sea. However, the damage is reported to be limited.

Despite the risks, oil continues to be transported through the Persian Gulf, with reportedly 7 million barrels of crude and refined products per day via Hormuz.

How Rising Crude Oil Prices Will Impact India

"For India, persistently high oil prices remain a key risk, given their potential to widen the import bill, stoke inflationary pressures, and strain the current-account balance," said Ponmudi R, CEO of Enrich Money.

Amidst the global oil price surge, India's average crude oil import price crossed $100 per barrel by last week. As per the data of the Petroleum Planning & Analysis Cell (PPAC) of the Oil Ministry, the Indian crude oil basket stood at $101.07 per barrel as of September 4, 2026. Although this is still lower than the $114.48 per barrel and $106.23 per barrel marks seen in April and May, it remains elevated and could have a graver impact on imports.

Since the war, India's crude oil import bill has reached the roof. India's freight rates on routes such as Saudi Arabia's Ras Tanura to India have skyrocketed 400% since late February. Also, the rate of shipping crude on very large crude carrier (VLCC) via this particular route spiked by 411% to $4.34 per barrel in August from $0.85 per barrel pre-war. Meanwhile, freight cost from Russia's Ust-Luga port to India's route on Suezmax tankers jumped by 137% to $19.90 per barrel by last month compared to $8.40 in February.

Also, war-risk insurance for a single voyage at Hormuz climbed mind-bogglingly between $7.5 million to $10 million, in comparison to merely $250,000 insurance before the conflict.

Meanwhile, India reportedly paid 60% more for crude oil imports in the first quarter of FY27 (April - June) due to rising crude oil prices. Also, the July import bill is 41% higher than the same month last year.

How Does Elevated Crude Oil Prices Impact Indian Stock Market?

"Indian equity markets are expected to remain cautious, with elevated crude oil prices continuing to dominate the macro backdrop. Escalating geopolitical tensions have kept energy markets on edge, with WTI crude briefly touching the $93-per-barrel mark before holding in the $92-93 range," Ponmudi said.

He added that the geopolitical backdrop remains fragile as the U.S.-Iran conflict shows few signs of easing. Uncertainty surrounding the Strait of Hormuz and the timing of its full reopening continues to underpin concerns over global oil supplies and broader market sentiment.

How Rising Oil Prices Impact LPG, PNG, CNG, Petrol & Diesel Prices In India?

As we know India is among the major importers of crude oil. Any surge in international crude would make import bills costly and that will push oil companies to hike prices of petroleum products. Here's a glance of the impact.

Fuel	Impact from higher crude oil	Likely effect on consumer prices	Why
Petrol	🔴 High	↑ Upward pressure	Petrol pricing is market-determined and OMCs consider international petroleum prices and market conditions.
Diesel	🔴 High	↑ Upward pressure	Higher crude raises refinery/input costs; diesel is also important for freight and transport.
LPG - Domestic	🟠 High, but government can absorb it	↑ Potentially, but may be delayed/limited	India imports ~60% of LPG. Domestic LPG is insulated from the full international price movement through government/OMC support.
LPG - Commercial	🔴 Very high	↑ Fastest impact	Commercial LPG is market-linked and directly reflects international LPG benchmarks and associated costs.
CNG	🟠 Moderate	↑ Possible	CNG pricing depends heavily on the cost/availability of natural gas; crude can influence the economics of competing fuels, but it is not a simple crude-to-CNG pass-through.
PNG	🟠 Moderate	↑ Possible	Similar to CNG: natural-gas procurement costs matter more directly than crude.
ATF	🔴 High	↑ Upward pressure	Aviation turbine fuel is a petroleum product and is exposed to international oil/refined-product prices.

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