Oil Prices Plummet Amid Hopes for U.S.-Iran Deal
Oil prices and energy stocks plummeted on Tuesday amid expectations of a U.S.-Iran deal that would reopen the Strait of Hormuz. Treasury Secretary Scott Bessent told CNBC in a televised interview that such a deal could be reached later today or tomorrow.
NRG Energy (NRG) and Diamondback Energy (FANG) were among the biggest decliners in the S&P 500, with shares down about 18% and 3%, respectively. Meanwhile, shares of Chevron (CVX) and ExxonMobil (XOM) fell by 1%, while BP (BP) shares dropped 4% despite posting solid earnings this morning.
West Texas Intermediate crude futures plummeted more than 5% to just under $76 a barrel. The decline in oil prices comes as energy stocks have been on a hot streak lately, with tensions in the Middle East and supply disruptions sending oil prices soaring.