Overview

• ONGC share price rose over 2% as global oil supply concerns increased following China’s sudden halt on diesel and gasoline exports.

• The blockade at the Strait of Hormuz threatens nearly 27% of global oil trade, pushing crude prices higher.

• Higher Brent crude prices directly boost ONGC earnings, making the company a key beneficiary of global supply disruptions.

Indian energy sector gained amid broader market recovery on March 5, 2026. Oil and Natural Gas Corporation (ONGC) share price went up 2.27% to 283.25 at press time.
The stock opened at 278 and hit an intraday high of 287.65 before settling at the current levels. Over 2.5 crore ONGC shares changed hands. The high volume is a sign of strong investor interest in the stock.

The surge comes at a time when the world energy market faces a dual threat. First is a fuel supply halt from China, and second is the blockade at Strait of Hormuz amid US-Iran war. Indian state-run oil companies, thus, find themselves in a unique position to fill gaps left by international supply chain disruptions.

Let’s explore an in-depth analysis of ONGC share price based on Moneycontrol data.

China Export Halt Sparks Domestic Rally

Reports suggest that China has directed its top refiners to stop exports of diesel and gasoline immediately. Since it is a major supplier of refined fuel to the global market, this decision creates a vacuum that other producers must fill. For a large-scale explorer like ONGC, this creates a favorable price environment. The company focuses on crude oil and gas extraction. However, the global rise in refined product prices usually pulls crude prices higher, which directly benefits the bottom line.

This export ban is largely a response to the war in the Middle East, which has forced many nations to secure their own energy reserves. While Nifty Oil & Gas index has faced a 2.6% dip over the past month due to war fears, the move by China acted as a catalyst for a 1.8% recovery in the sector index today. This shows that despite high volatility, some stocks like ONGC can find momentum when global supply logic changes.

Also Read: Stock Market Today: Sensex Climbs to 79,481, Nifty 24,573; Reliance, Coal India Lead Market Rebound

Impact of the Strait of Hormuz Blockade

The closure of the Strait of Hormuz by the Islamic Revolutionary Guard Corps adds another layer of complexity to the market. Roughly 27% of the world's oil trade passes through this narrow waterway. For India, the stakes are high because more than half of its crude and gas imports travel through this point. While this creates a supply risk for the nation, it also makes domestic production more valuable.

Market analysts note that ONGC is a key winner when Brent crude oil prices stay above $70 per barrel. Currently, Brent is trading near $85 per barrel. Every one-dollar rise in the price of oil tends to boost the earnings of ONGC by about 1.5% to 2%. With the Hormuz route shut, global prices are likely to stay high, which supports the current ‘Outperform’ rating for ONGC stock from the majority of market experts.

ONGC share price chart on Moneycontrol shows gains of 2.15% in afternoon trade:

Strategic Outlook and Valuation

ONGC share price was at a Price-to-Earnings (PE) ratio of 9.40, which is slightly lower than the sector average of 10.35. This suggests the stock may still have room to move, especially given its book value per share of 301.76. Investors should keep a close eye on the duration of the Hormuz blockade and China’s export policy. For now, ONGC stock is a top pick for those looking to capitalize on high energy prices.

Also Read: Innovision IPO Sets Rs. 521–548 Price Band, Issue Opens on March 10

FAQs

1. Why did ONGC stock rise today?

Oil and Natural Gas Corporation shares moved higher mainly because global oil supply risks increased. China reportedly stopped exporting diesel and gasoline, which tightened global fuel supply. At the same time, tensions around the Strait of Hormuz raised fears of supply disruptions. When global supply becomes uncertain, oil prices usually rise, which benefits producers like ONGC.

2. How does the Strait of Hormuz affect oil prices?

The Strait of Hormuz is one of the most important oil shipping routes in the world. Nearly 27% of global oil trade passes through this narrow waterway. If it gets blocked or restricted, oil shipments slow down and supply drops. This creates fear in energy markets, which pushes oil prices higher across global exchanges.

3. Why did China stop exporting diesel and gasoline?

China reportedly asked its refiners to halt exports of diesel and gasoline to secure domestic fuel supplies. Global conflicts and supply uncertainty have pushed many countries to prioritize their own energy needs. By limiting exports, China is ensuring enough fuel stays inside the country, but this decision also tightens supply in global markets.

4. How do higher oil prices benefit ONGC?

Companies like Oil and Natural Gas Corporation focus on exploring and producing crude oil and natural gas. When global oil prices rise, the value of the oil they produce also increases. For example, analysts estimate that every one-dollar rise in Brent crude prices can improve ONGC’s earnings by roughly 1.5% to 2%.