This comes after the stocks took a severe beating earlier last week as tensions between Iran and the US-Israel escalated, with no sign of a diplomatic resolution. Supply shortages began to emerge in several cities, including Mumbai and Bengaluru, with restaurants in some areas warning of possible closures due to insufficient fuel.
Mideast war to end soon?
Global markets are betting on the ongoing war between Iran and Israel-US to end soon after US President Donald Trump on Tuesday suggested an imminent end to the conflict. Trump told CBS News that he thinks the war against Iran “is very complete” and that Washington was “very far ahead” of his initial four-to-five week estimated timeframe. He further told reporters that his administration was lifting sanctions on some countries as part of efforts to stabilise the oil market.
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“So we have sanctions on some countries. We’re going to take those sanctions off until the Strait is up,” he said, without providing any more details. “It’s going to end soon, and if it starts up again, they’ll be hit even harder,” Trump added.
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However, the conflict is yet to show any sign of diplomatic resolution. The US and Israel launched what some described as the war’s heaviest strikes on Iran. Iran’s government warned that its state security forces were ready with “fingers on the trigger” to confront any revival of anti-government protests. The country targeted several areas in Israel, Lebanon and the Gulf early on Wednesday as the war stretched into its 12th day.
Gas prices surge in India
As a result of supply constraints arising from the closure of the Strait of Hormuz, gas prices have surged in India. Domestic cooking gas now costs Rs 60 more per cylinder, while commercial LPG price rose by Rs 114.5.
European natural gas prices jumped nearly 40% last week after Qatar Energy halted production at a key LNG facility amid escalating Middle East tensions.
India takes measures amid gas crisis
The Indian government on Tuesday issued the Natural Gas (Supply Regulation) Order 2026, in order to prioritise PNG, CNG and LPG production in gas allocation. The government also invoked the Essential Commodities Act of 1955 (ESMA) to ensure an uninterrupted domestic cooking gas supply amid the ongoing West Asia conflict.
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The government directed refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the LPG pool. These include domestic piped natural gas supply, compressed natural gas for transport, LPG production, including LPG shrinkage requirements, pipeline compressor fuel and other essential pipeline operational requirements.
(With inputs from agencies)
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