On Tuesday, US President Donald Trump announced the ceasefire between Iran and Israel. This marks the end of 12 long days of war between the two nations that caused severe destruction to both nations.
Crude Prices tumbled by more than 10 percent on 24 June 2025, and plunged by almost 14 percent in the last two trading sessions. In this article, we will look at some stocks that will pose a direct benefit to this.
Aviation Stocks (SpiceJet, InterGlobe Aviation, etc)
Airlines get immediate relief from lower crude prices as aviation turbine fuel (ATF) is a substantial portion of their operating cost. With oil further down, airlines like SpiceJet and IndiGo (InterGlobe Aviation) should see better margins and profitability levels, especially in the peak travel season
Refining Companies (Reliance Industries, HPCL, BPCL, etc)
Refining companies benefit from falling crude, as it lowers their raw material cost and increases refining margins, provided that product prices remain stable. Companies such as Reliance Industries, HPCL, and BPCL should see margin expansion and better bottom-line results in the event that global demand remains for crude post-ceasefire.
Paint Companies (Asian Paints, Berger Paints, etc)
Crude is an important input in the paint manufacturing industry as it has a fundamental role in pricing raw materials such as solvents and resins. If crude prices decline, Asian Paints, Berger Paints, and others benefit by improving their gross margins, which is important in a market such as India, where price is sensitive and demand is volume-driven.
Oil Marketing Companies (ONGC, Oil India, etc)
While the upstream oil companies, ONGC and Oil India, could face short-term pressure on realizations due to lower crude prices, the ceasefire reduces geopolitical risk and allows for managed operations. Furthermore, fewer subsidies and improved price stability should also support earnings medium term.
Shipping Companies (Shipping Corp, GE Shipping, etc)
The cease-fire diminishes geopolitical risks in critical trade routes, specifically in the Strait of Hormuz, a huge chokepoint for global oil and commodity shipping. Lower crude prices also lower bunker fuel prices, which correspondingly improves operating margins for players such as Shipping Corp of India (SCI) and Great Eastern Shipping (GESE). These companies could experience better fleet utilization, more global movement, and increased profitability in the short term.
Written by Satyajeet Mukherjee
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