New Delhi, March 22 -- The Indian oil marketing companies (OMCs) are facing one of their worst monthly falls on record as the spike in global crude oil prices to levels not seen in the last four years is weighing significantly on their balance sheets.

The ongoing US-Israeli war with Iran has resulted in the closure of the Strait of Hormuz, through which 20% of the global crude oil flows and over 40% of India's crude imports transit. This, along with attacks on gas and oil facilities in the region, has driven the Brent crude futures past the $100 mark. At one point, prices touched almost $120/barrel.

OMCs operate with a counter-cyclical leverage model, i.e. when losses or margin pressures emerge, debt rises sharply to absorb working capi...