Trump's Iran Talks Send Crude Oil Prices Tumbling Amid Strait of Hormuz Deal
US President Donald Trump announced on Monday that negotiations with Iran would begin later in the day. He stated there's a deal to reopen the Strait of Hormuz and that talks on the denuclearization of Iran will follow.
The news triggered a sharp drop in crude oil prices, with Brent futures expiring in October down 4.6% to $83.88 per barrel. West Texas Intermediate (WTI) futures for the same expiry dropped roughly 4.5% to $77.8 per barrel.
Energy stocks took a hit as well, with Chevron (CVX) falling about 1.2%, Exxon Mobil (XOM) slipping 1.6%, and Occidental Petroleum (OXY) losing around 1.5%. Devon Energy (DVN) declined nearly 2.6% and APA Corp. (APA) dropped about 2.8%.
However, Barclays raised its price target on Chevron to $216 from $213 while maintaining an 'Equal Weight' rating following the company's second-quarter results. The brokerage highlighted record Permian production, stronger refining margins, and lower capital spending as key positives supporting its revised valuation.