TLDR
- Major oil companies including Exxon, Chevron, and ConocoPhillips experienced significant share price declines in premarket sessions following ceasefire news
- Brent crude plummeted more than 10% to $96.73 while WTI slid nearly 14% to $95.45
- President Trump revealed a conditional two-week truce requiring Iran to fully reopen the critical Strait of Hormuz
- Energy sector equities had posted remarkable gains of 34–42% year-to-date amid escalating Middle Eastern tensions
- Declining crude prices create favorable conditions for refining companies like Valero and Marathon while pressuring oil producers and service providers
President Donald Trump unveiled a temporary two-week truce involving the United States, Israel, and Iran late Tuesday evening, triggering a dramatic collapse in crude oil prices and erasing substantial gains throughout the energy marketplace.
Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push
U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iran’s agreement to the immediate, full, and… pic.twitter.com/npInV48tUR
— Wu Blockchain (@WuBlockchain) April 7, 2026
The ceasefire declaration arrived moments before Trump’s previously established April 7th ultimatum, announced at 8 p.m. Eastern Time. The president had previously issued stern warnings that Iran would face severe repercussions should it fail to reopen the strategically vital Strait of Hormuz.
Trump shared via Truth Social at 6:32 p.m. ET that Iranian officials had accepted ceasefire terms, contingent upon the “complete, immediate, and safe opening” of the crucial waterway.
The Strait of Hormuz serves as a critical transit point for approximately 20% of global crude oil shipments. Its blockage had been instrumental in driving petroleum prices higher throughout recent months.
Oil prices had climbed above $110 per barrel earlier in the week, following Trump’s weekend warnings that the United States would strike Iranian infrastructure including power facilities and bridges if the strategic passage remained closed.
In the aftermath of the ceasefire announcement, Brent crude futures collapsed more than 10% to $96.73. West Texas Intermediate plunged nearly 14% to $95.45, falling beneath the psychologically important $100 per barrel threshold.
Exxon Mobil declined 6.3% during premarket trading sessions. Chevron retreated 4.8%, while Occidental Petroleum tumbled 8.5%. Exploration company APA sank 10%, and Diamondback Energy along with Devon Energy dropped 7.7% and 6.4% respectively.
ConocoPhillips similarly experienced substantial losses. The trio of leading oil producers — Exxon, Chevron, and ConocoPhillips — had recorded impressive advances of approximately 37%, 34%, and 42% respectively since the beginning of January.
Year-to-Date Rally Faces Reversal Threat
Exxon delivered its strongest quarterly performance ever during Q1 2026, skyrocketing 41%. Chevron posted a 36% increase during the identical timeframe. Both equities had extended their rallies as regional conflict intensified.
Exxon additionally submitted a regulatory filing Wednesday indicating expectations for approximately 6% lower oil production in Q1 versus Q4 2025, attributed to operational disruptions across Qatar and the United Arab Emirates.
The corporation projected that favorable pricing dynamics would contribute $2.1 to $2.9 billion to upstream earnings compared to the previous quarter. Nevertheless, volume disruptions are anticipated to reduce combined upstream and downstream operations by $400 million to $800 million.
Exxon’s complete Q1 financial results are scheduled for release on May 1.
Shell disclosed that liquefied natural gas output would similarly decline during Q1 due to war-related impacts on Qatari operations. Shell shares retreated 5.4% in London trading and 4.2% in U.S. premarket activity.
Refining Sector Positioned for Gains
Not every energy sector participant faces headwinds. Decreased crude oil costs enhance profit margins for refiners.
Valero Energy, Phillips 66, and Marathon Petroleum are among refining companies poised to benefit from reduced oil input costs.
Oilfield services providers including Halliburton and Schlumberger, conversely, confront earnings headwinds alongside major oil producers.
Trump indicated that the majority of disputed issues between the United States and Iran have reached preliminary agreement. The two-week ceasefire period is designed to allow final negotiations on remaining terms.
Should the truce maintain stability and the Strait of Hormuz resume full operations, market analysts anticipate crude oil prices could decline further throughout coming weeks.
