Shares of upstream oil producers ONGC and Oil India came under pressure in early trade on June 12, 2026, as global crude oil prices extended their decline amid improving prospects for a diplomatic resolution between the United States and Iran.

Brent crude futures fell by $1.21, or 1.3%, to $89.17 per barrel, slipping below the key $90 level. Meanwhile, US West Texas Intermediate (WTI) crude declined by $1.23, or 1.4%, to $86.48 per barrel. The weakness in crude prices followed comments from US President Donald Trump, who said that discussions with Iran had made progress and that planned military strikes had been called off, raising hopes of de-escalation in the Middle East.

The decline in crude prices reduced the geopolitical risk premium that had been built into oil markets during recent tensions surrounding Iran and the Strait of Hormuz. Market participants interpreted the latest developments as potentially lowering the risk of supply disruptions from one of the world's most critical energy-producing regions.

As a result, shares of oil exploration and production companies, whose earnings are closely linked to crude oil realizations, witnessed selling pressure. ONGC and Oil India were among the notable losers in the energy pack during morning trade. Lower crude prices can impact revenue and profitability expectations for upstream producers, although they may benefit downstream oil marketing companies through reduced input costs.

Despite the sharp correction in oil prices, analysts continue to monitor developments in the Middle East, as uncertainties surrounding a formal agreement and shipping activity through the Strait of Hormuz remain key factors influencing global energy markets.