Oil Prices Plummet Amid Speculation of U.S.-Iran Deal
Oil prices and energy stocks plummeted on August 4, 2026, as investors speculated that a U.S.-Iran deal could reopen the Strait of Hormuz. Treasury Secretary Scott Bessent told CNBC in an interview that such a deal could be reached by the end of the day or tomorrow.
The oil price drop was significant, with West Texas Intermediate crude futures falling more than 5% to just under $76 a barrel. Energy stocks also took a hit, with shares of NRG Energy (NRG) and Diamondback Energy (FANG) declining by around 18% and 3%, respectively.
Other energy companies, including Chevron (CVX), ExxonMobil (XOM), and BP (BP), saw their shares fall between 1% to 4%. Despite this, Bank of America analysts noted that the energy sector had a strong July, with stocks rising 12.5% in the month.