TLDR
- Shares of Exxon, Chevron, and ConocoPhillips tumbled in premarket sessions following news of a U.S.-Iran ceasefire agreement
- Brent crude plummeted more than 10% to $96.73 while WTI crashed nearly 14% to $95.45
- A two-week ceasefire was announced by Trump, contingent upon Iran’s complete reopening of the Strait of Hormuz
- Energy stocks had experienced dramatic gains of 34–42% year-to-date amid Middle Eastern tensions
- The crude price decline favors refiners such as Valero and Marathon while pressuring major oil producers and services companies
A dramatic two-week ceasefire agreement between the United States, Israel, and Iran was unveiled by President Donald Trump late Tuesday evening, triggering a sharp selloff in crude oil markets and erasing substantial gains throughout the energy sector.
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
The ceasefire declaration arrived moments before Trump’s April 7th ultimatum deadline, announced at 8 p.m. Eastern Time. The President had previously issued stern warnings that Iran would face severe repercussions unless it reopened the critical Strait of Hormuz shipping lane.
Trump revealed via Truth Social at 6:32 p.m. ET that Iranian leadership had accepted ceasefire terms, provided the nation ensures the “complete, immediate, and safe opening” of the strategic waterway.
The Strait of Hormuz represents a vital chokepoint for global energy markets, facilitating approximately 20% of worldwide crude oil transportation. The blockade had emerged as a primary catalyst driving elevated petroleum prices throughout recent months.
Crude oil valuations had climbed above $110 per barrel previously, particularly after Trump issued weekend threats suggesting U.S. forces would strike Iranian infrastructure including power facilities and bridges should the passage remain obstructed.
In the aftermath of the ceasefire revelation, Brent crude futures plunged over 10% to reach $96.73. West Texas Intermediate experienced an even steeper decline of nearly 14% to $95.45, breaking through the $100 per barrel threshold.
Exxon Mobil shares declined 6.3% during premarket hours. Chevron retreated 4.8%, while Occidental Petroleum tumbled 8.5%. Exploration company APA suffered a 10% loss, with Diamondback Energy and Devon Energy declining 7.7% and 6.4% respectively.
ConocoPhillips experienced similarly substantial losses. The trio of oil industry giants — Exxon, Chevron, and ConocoPhillips — had recorded impressive year-to-date advances of approximately 37%, 34%, and 42% respectively since January 1st.
Strong First-Quarter Performance Now Under Threat
Exxon achieved its strongest quarterly performance ever during Q1 2026, soaring 41%. Chevron posted a 36% increase during the identical timeframe. Both equities had continued climbing as Middle Eastern hostilities escalated.
In a Wednesday regulatory filing, Exxon disclosed expectations that oil production would decline approximately 6% in Q1 versus Q4 2025, attributed to operational disruptions in Qatar and the United Arab Emirates.
The corporation projected that favorable pricing conditions would contribute between $2.1 and $2.9 billion to upstream earnings compared to the previous quarter. Nevertheless, production volume challenges are anticipated to reduce combined upstream and downstream operations by $400 million to $800 million.
Exxon’s complete Q1 earnings report is scheduled for release on May 1.
Shell disclosed that its liquefied natural gas output would similarly decrease in Q1 owing to war-related impacts on Qatari operations. Shell equities dropped 5.4% in London trading and 4.2% in U.S. premarket sessions.
Downstream Refiners Positioned for Gains
The energy sector selloff doesn’t affect all companies equally. Reduced crude prices enhance profit margins for refining operations.
Companies including Valero Energy, Phillips 66, and Marathon Petroleum are positioned among refiners likely to benefit from more affordable oil inputs.
Conversely, oilfield services providers such as Halliburton and Schlumberger are confronting earnings headwinds alongside the integrated oil majors.
Trump indicated that the majority of disputed issues between American and Iranian negotiators have achieved resolution. The fourteen-day ceasefire window is designed to complete remaining agreement details.
Should the truce prove sustainable and the Strait of Hormuz resume normal operations, market analysts anticipate crude prices could experience additional declines throughout coming weeks.
