Brent crude oil prices have skyrocketed 85% in 2026, rising from about $61.98 to $114.57 per barrel following the outbreak of the Iran war. This surge is attributed to geopolitical risks, particularly the closure of the Strait of Hormuz, which has affected nearly 20% of global oil supply. For India, this spike threatens to widen the current account deficit and squeeze corporate margins in oil-dependent sectors, while simultaneously boosting profit margins for oil companies. Key players in the oil exploration sector, such as ONGC, Oil India, Vedanta Ltd, and Hindustan Oil Exploration Company (HOEC), stand to benefit from rising crude prices, provided no windfall taxes are imposed by the government. ONGC's recent decision to float a $20 billion global tender for deepwater drilling signifies a strategic push to enhance domestic production, particularly in high-risk areas previously deemed unviable. Meanwhile, Oil India is expanding its operations and refining capabilities, and Vedanta is set to demerge into focused entities to unlock value. However, the sector faces risks from price volatility and potential government tax policies that could impact profitability. Investors should carefully weigh these factors when considering investments in oil and gas stocks.