Shares of Great Eastern Shipping Company rose as much as 7.7% to Rs 1,049.70 on the BSE, while Shipping Corporation of India (SCI) surged 13.3% to Rs 233.80, amid growing expectations of a spike in tanker and container freight rates.
The sharp rally comes as traders braced for fallout from Israel’s large-scale military strike on Iran, a move that heightened the risk of disruptions in one of the world’s most vital shipping corridors.
The Israeli military launched coordinated strikes on Iran on Friday, targeting nuclear facilities, missile production sites and top commanders. Explosions were reported at Iran’s Natanz uranium enrichment plant, and the country’s elite Revolutionary Guards confirmed that its commander, Hossein Salami, was killed. Israel, in turn, declared a state of emergency, anticipating retaliatory missile and drone attacks.
The geopolitical shockwave roiled financial markets. Asian stocks slumped, Wall Street futures fell, and investors rushed to traditional safe havens. Crude oil jumped nearly 9%, with Brent futures climbing $6 to $75.36 per barrel and WTI gaining $6.16 to $74.20. Gold rallied 1.5% to about $3,434 an ounce, closing in on its all-time high of $3,500.05.
With tensions flaring in the Middle East, a region accounting for a significant portion of global oil exports, the spectre of supply bottlenecks has rattled investors already on edge over U.S. President Donald Trump’s erratic trade policy stance.Strait of Hormuz risk seen as low
Despite market jitters, JPMorgan sought to calm fears about a total shipping shutdown. The bank downplayed the likelihood of Iran blocking the Strait of Hormuz, a narrow chokepoint through which roughly a fifth of global oil passes, calling it “a low-risk event.”
“The closure of Hormuz is a low-risk event as Iran would be damaging its own position, both economically and politically, by irritating its main customer,” JPMorgan said in a note.
Nonetheless, the mere prospect of disruption has been enough to spark a sharp move in energy prices and freight expectations, adding fresh momentum to shipping counters.
Also read | Oil jumps more than 12% as Israel strikes Iran, rattling investors
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