TLDR
- Major energy stocks including Exxon, Chevron, and ConocoPhillips plummeted in premarket trading following ceasefire news
- Brent crude plunged more than 10% to $96.73 while WTI tumbled nearly 14% to $95.45
- President Trump declared a conditional two-week truce requiring Iran to fully reopen the Strait of Hormuz
- Energy sector stocks had jumped 34–42% year-to-date amid escalating Middle East tensions
- Declining crude prices create opportunities for refiners like Valero and Marathon while pressuring integrated oil companies
A surprise two-week ceasefire agreement between the United States, Israel, and Iran announced by President Donald Trump late Tuesday triggered a massive selloff in energy stocks as crude oil prices collapsed.
Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push
U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iran’s agreement to the immediate, full, and… pic.twitter.com/npInV48tUR
— Wu Blockchain (@WuBlockchain) April 7, 2026
Trump’s announcement arrived just hours before his self-imposed April 7th ultimatum at 8 p.m. Eastern Time. The president had previously threatened severe military action against Iran unless it reopened the critical Strait of Hormuz waterway.
In a Truth Social post published at 6:32 p.m. ET, Trump declared that Iran had accepted ceasefire terms contingent upon the “complete, immediate, and safe opening” of the strategically vital strait.
Approximately 20% of global crude oil supplies transit through the Strait of Hormuz. The waterway’s blockade had been a primary catalyst driving oil prices higher throughout recent months.
Crude oil prices had climbed above $110 per barrel earlier in the day after Trump’s weekend warning that American forces would strike Iranian infrastructure including power facilities and bridges if the strait remained closed.
In the aftermath of the ceasefire revelation, Brent crude futures plummeted over 10% to $96.73 per barrel. West Texas Intermediate crashed nearly 14% to $95.45, sliding beneath the psychologically important $100 threshold.
Exxon Mobil shares declined 6.3% during premarket hours. Chevron shed 4.8%, while Occidental Petroleum tumbled 8.5%. Exploration company APA plunged 10%, as Diamondback Energy and Devon Energy retreated 7.7% and 6.4% respectively.
ConocoPhillips experienced significant declines as well. The three integrated oil giants — Exxon, Chevron, and ConocoPhillips — had rallied approximately 37%, 34%, and 42% respectively since the beginning of January.
Year-to-Date Rally Under Threat
Exxon posted its strongest quarterly performance ever in Q1 2026, soaring 41%. Chevron climbed 36% during the identical timeframe. Both energy leaders had extended gains as Middle East tensions intensified.
Exxon disclosed in a regulatory filing Wednesday that it anticipates oil output declining roughly 6% in Q1 versus Q4 2025, attributed to operational disruptions in Qatar and the United Arab Emirates.
The energy giant projected that favorable pricing conditions would enhance upstream segment profits by $2.1 to $2.9 billion compared to the previous quarter. Conversely, production volume constraints are forecast to reduce combined upstream and downstream earnings by $400 million to $800 million.
Exxon’s complete Q1 financial results are scheduled for release on May 1.
Shell disclosed that its liquefied natural gas output would likewise decline in Q1 due to conflict-related impacts on Qatar facilities. Shell stock fell 5.4% on the London exchange and dropped 4.2% in U.S. premarket activity.
Refining Sector Poised for Gains
The energy sector downturn isn’t universal. Declining crude oil costs enhance profit margins for refining operations.
Valero Energy, Phillips 66, and Marathon Petroleum represent refining companies positioned to capitalize on reduced feedstock expenses.
Conversely, oilfield services providers including Halliburton and Schlumberger confront earnings headwinds similar to those affecting integrated oil majors.
Trump indicated that the majority of disputed issues between Washington and Tehran have been resolved. The two-week ceasefire period is designed to formalize outstanding agreements.
Should the truce endure and the Strait of Hormuz fully reopen to commercial traffic, market analysts anticipate further downward pressure on oil prices in coming weeks.
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