Energy Stocks Down 1.5% as Oil Falls

Market Overview

Energy stocks declined sharply on Monday as oil prices tumbled following the weekend pause in strike actions between the United States and Iran. The S&P 500 Energy Index fell 1.5%, reflecting broad weakness across the sector.

Oil Price Movement

Brent crude futures dropped 6.9% to $90.03 per barrel, while U.S. West Texas Intermediate (WTI) fell 6.4% to $83.51 per barrel. Prices hovered near a one‑week low after the cessation of hostilities raised hopes of a diplomatic resolution that could restore shipping through the Strait of Hormuz.

Equity Impact

Among the biggest losers were pipeline operators: ONEOK (NYSE:OKE), Kinder Morgan (NYSE:KMI), Williams Companies (NYSE:WMB) and Targa Resources (NYSE:TRGP) each declined between 2.4% and 2.9%. Energy majors Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) slipped approximately 1.5% each. Other oil producers such as Occidental Petroleum (NYSE:OXY), Devon Energy (NYSE:DVN), APA Corp (NASDAQ:APA) and Diamondback Energy (NASDAQ:FANG) posted declines ranging from 1.9% to 2.4%.

Analyst Commentary

Panmure Liberum analyst Ashley Kelty noted that despite the pause in strikes, there has been no increase in shipping traffic through the Strait of Hormuz, suggesting the crude sell‑off may be overdone and that a return to normalisation appears remote in the near term.

Conclusion

The combination of falling oil prices and continued geopolitical uncertainty drove a sector‑wide sell‑off, with both upstream producers and midstream operators experiencing notable price‑driven declines.