Shares of JK Tyre & Industries plunged 8.25%, CEAT declined 5.07%, Apollo Tyres fell 4.3%, Balkrishna Industries slipped 4%, Goodyear India dropped 3.41%, while MRF lost around 3%.
The decline followed a steep spike in global crude prices, with oil moving closer to the $120 per barrel mark as supply disruptions intensified in the Middle East. Brent crude jumped as much as 28% to $118.73 per barrel, recording its sharpest intraday move since April 2020.
Supply pressures have increased after the Strait of Hormuz remained effectively shut, disrupting a key global energy route. The situation has forced major Gulf producers such as Kuwait and the United Arab Emirates to scale back output as storage facilities approach capacity. Iraq has also reportedly begun cutting production.
The energy market turmoil stems from escalating tensions in West Asia after US and Israeli strikes on Iran more than a week ago. The suspension of tanker movement through the Strait of Hormuz, which normally carries roughly one-fifth of global oil shipments, along with attacks on energy infrastructure, has driven a sharp rise in crude and natural gas prices.
For tyre manufacturers, higher oil prices pose a significant challenge because crude derivatives form a major part of their cost structure. Crude oil is used to produce synthetic rubber and other components such as carbon black, both essential materials in tyre manufacturing. A sustained increase in oil prices therefore tends to raise production costs and put pressure on profitability across the sector.