Adani Total Gas to Gujarat Gas, GAIL: Gas stocks surge up to 15% as US-Iran conflict raises supply concerns

Gas-related stocks such as Adani Total Gas and Gujarat Gas rallied sharply on Wednesday, rising by as much as 15% amid concerns over tightening gas supplies in India due to the ongoing US-Iran war.

Adani Total Gas led the gains, climbing as much as 14.7% to hit an intraday high of ₹544.25. Gujarat Gas also surged around 12% to ₹420 during the session. Other gas-linked companies also advanced, with Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) rising more than 2% each.

The escalating conflict involving Iran and the Israel-US alliance has started to affect India’s energy market, particularly natural gas and LPG supplies. Disruptions in shipments through the Strait of Hormuz — a key global energy transit corridor — have tightened supplies as tanker movement faces heightened security risks. India remains heavily dependent on imported gas to meet domestic demand.

The Strait of Hormuz is among the most critical energy shipping routes globally. However, traffic through the passage has been disrupted amid rising tensions, with Iran reportedly targeting vessels passing through the region. Several global suppliers have already issued force majeure notices on gas shipments due to the disruption.

Stock market today

Indian benchmark indices Sensex, Nifty declined over 1% on Wednesday after recovering in the previous session, as the Middle East conflict kept investors cautious about its potential impact on inflation and economic growth. Oil prices also remained volatile during the session.

Global markets, however, showed strength. The MSCI Asia Pacific Index rose 1.8%, marking its second consecutive day of gains after the Wall Street Journal reported that the International Energy Agency proposed the largest crude reserve release in its history. Brent crude fell about 1% on Wednesday after plunging 11% in the previous session. European equities were expected to open muted, while US equity-index futures climbed around 0.5%, signalling that the rally in global stocks could continue.

The war, now in its second week, has shown little sign of easing. US President Donald Trump warned Iran against laying mines in the Strait of Hormuz after reports suggested that the country was preparing to do so or had already started deploying them.

Brent crude prices have climbed since the beginning of the year as the effective closure of the strait — which typically handles about 20% of global oil shipments — has forced some producers to curb output. Tuesday’s sharp decline in oil prices was driven by expectations that global leaders would intervene before supply disruptions escalate further.

Global markets are also betting that the ongoing conflict between Iran and the Israel-US alliance could end soon. On Tuesday, US President Donald Trump indicated that the war may conclude sooner than expected, telling CBS News that he believes the conflict against Iran “is very complete” and that Washington was “very far ahead” of the initial four-to-five week timeline.

Trump also said his administration was lifting sanctions on certain countries as part of efforts to stabilise global oil markets.

“So we have sanctions on some countries. We're going to take those sanctions off until the Strait is up,” he said, without providing further details. “It's going to end soon, and if it starts up again, they’ll be hit even harder,” Trump added.

Despite these comments, the conflict continues to escalate with no immediate diplomatic resolution in sight. The US and Israel reportedly launched some of the heaviest strikes of the war against Iran. Meanwhile, Iran’s government warned that its state security forces were ready with “fingers on the trigger” to counter any resurgence of anti-government protests. The country also targeted several locations in Israel, Lebanon and the Gulf early on Wednesday as the war entered its 12th day.

Gas prices surge in India

Supply disruptions linked to the Strait of Hormuz have pushed up gas prices in India. Domestic cooking gas prices have increased by ₹60 per cylinder, while commercial LPG prices have risen by ₹114.5. Meanwhile, European natural gas prices surged nearly 40% last week after Qatar Energy halted production at a key LNG facility as tensions in the Middle East intensified.

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