Global oil stocks tumble as crude prices retreat after U.S. halts Iran strikes

Shares in oil and gas producers across the U.S. and Europe fell sharply after the U.S. military halted two weeks of strikes on Iran, with Tehran signaling it would suspend its own attacks as long as the pause holds, easing fears of a broader Middle East escalation and dragging crude prices lower.

In the U.S., Chevron and Exxon Mobil dropped about 2.5% each, and ConocoPhillips slid 3.1% by 04:42 ET (08:42 GMT). Devon Energy fell 3%, while oilfield services companies SLB and Halliburton slipped 1.3% and 1.8%, respectively. Occidental Petroleum and Diamondback Energy shed 3.7% and 2.7%, respectively.

European names saw steeper declines, with the region’s oil and gas index down about 2%. BP fell 3.6%, Equinor lost 5.4% while Var Energi, Eni, and Maurel & Prom dropped more than 4% each.

Neste, Shell and Repsol slid more than 1%, Aker BP declined 3.2%, while TotalEnergies and OMV were down around 3% each. Portugal’s Galp fell 3.2%, a drop compounded by second-quarter results and news of an acquisition of a wind portfolio.
The selloff in energy shares came as oil prices tumbled following the announcements, with Brent crude futures down 6.7% to $90.24 a barrel.

The pause came as diplomats sought to give peace talks “some space,” according to U.S. officials, following a China-led push to revive stalled negotiations in Pakistan. Iran has also refrained from military operations against regional targets in recent days and has said it will reciprocate the halt.

Still, the weekend brought signs that the broader conflict remains far from resolved. Saudi forces struck Iran-backed Houthi targets in Yemen in response to the group’s recent attacks on Red Sea shipping.

Separately, Ukraine’s military reportedly struck an Iranian commercial vessel in the Caspian Sea, killing one sailor and injuring another; Kyiv said the ship was transporting military cargo supporting Russia’s invasion, while Tehran called the strike a “hostile and criminal act.”

Investors were nonetheless encouraged by the pause, which came shortly after the White House was reported to be weighing a “massive attack” on Iran. But analysts cautioned that the path to a lasting peace remains uncertain. Negotiators still need to reach agreement on some of the most contentious issues, including the future of Iran’s nuclear program, the potential easing of sanctions, and Tehran’s support for proxy groups across the Middle East.

The Strait of Hormuz, through which a fifth of global oil supply flowed before the conflict began, remains closed, with the U.S. maintaining its blockade of the waterway.