Key Takeaways

  • Major oil producers experienced significant premarket declines following the announcement of a U.S.-Iran ceasefire agreement
  • Brent crude tumbled over 10% to reach $96.73 while WTI plummeted nearly 14% to $95.45
  • The two-week ceasefire requires Iran to fully reopen the Strait of Hormuz waterway
  • Energy stocks had climbed 34–42% year-to-date amid escalating Middle East tensions
  • Refining companies like Valero and Marathon may gain from reduced crude costs while exploration firms face headwinds

President Donald Trump revealed a two-week ceasefire agreement involving the United States, Israel, and Iran during a late Tuesday announcement, triggering a dramatic collapse in crude oil prices and erasing recent energy sector gains.

Trump’s disclosure arrived moments before his self-established April 7th ultimatum, occurring at 8 p.m. Eastern Time. The president had previously indicated that Iran would experience severe repercussions if the Strait of Hormuz remained closed.

Through a Truth Social post at 6:32 p.m. ET, Trump confirmed Iran’s acceptance of ceasefire terms, which require the “complete, immediate, and safe opening” of the strategic waterway.

The Strait of Hormuz serves as a transit route for approximately 20% of global crude oil supplies. The closure of this vital passage had been driving upward pressure on energy markets throughout recent months.

Oil prices had climbed above $110 per barrel before the announcement, particularly after Trump’s weekend warning that American forces would strike Iranian power infrastructure and bridges if the blockade continued.

After the ceasefire revelation, Brent crude futures plunged more than 10% to settle at $96.73. West Texas Intermediate declined nearly 14% to $95.45, falling beneath the $100 per barrel threshold.

Exxon Mobil plummeted 6.3% during premarket hours. Chevron declined 4.8%, while Occidental Petroleum retreated 8.5%. Exploration company APA tumbled 10%, with Diamondback Energy and Devon Energy dropping 7.7% and 6.4% respectively.


XOM Stock Card
Exxon Mobil Corporation, XOM

ConocoPhillips experienced substantial losses as well. The trio of major producers — Exxon, Chevron, and ConocoPhillips — had rallied approximately 37%, 34%, and 42% respectively since the beginning of January.

Quarterly Rally Faces Reversal

Exxon recorded its strongest quarterly performance in company history during Q1 2026, climbing 41%. Chevron advanced 36% throughout the identical timeframe. Both companies had continued rising since regional hostilities intensified.

Exxon submitted a regulatory filing Wednesday indicating anticipated oil production declines of 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 earnings by $2.1 to $2.9 billion compared to the previous quarter. Meanwhile, volume disruptions are forecast to reduce combined upstream and downstream operations by $400 million to $800 million.

Exxon plans to publish complete Q1 financial results on May 1.

Shell disclosed that liquefied natural gas output would similarly decline in Q1 because of conflict-related impacts on Qatar facilities. Shell shares retreated 5.4% in London trading and 4.2% during U.S. premarket sessions.

Refining Sector Poised for Gains

Certain energy companies may benefit from the recent developments. Decreased crude costs typically enhance profit margins for refiners.

Valero Energy, Phillips 66, and Marathon Petroleum represent refining operations positioned to capitalize on lower oil prices.

Oilfield services providers including Halliburton and Schlumberger, conversely, anticipate earnings challenges similar to those confronting major producers.

Trump indicated that most disputed issues between the United States and Iran have reached preliminary agreement. The two-week period will allow both parties to complete final arrangements.

Should the ceasefire remain intact and the Strait of Hormuz resume normal operations, market analysts anticipate further oil price declines in coming weeks.