Global oil and gas equities experienced a sharp sell‑off after the United States announced a halt to two weeks of military strikes on Iran. The pause, intended to give diplomatic peace talks some space, was accompanied by Tehran’s pledge to suspend its own attacks for the duration, reducing immediate escalation concerns.
Brent crude futures fell 6.7%, settling at $90.24 a barrel. The price decline translated into broad equity weakness across major producers. In the United States, Chevron and Exxon Mobil each slipped about 2.5%, while ConocoPhillips dropped 3.1% by 04:42 ET. Devon Energy fell 3%, SLB (Schlumberger) rose 11.01%, Halliburton declined 1.8%, Occidental Petroleum fell 3.7%, and Diamondback Energy lost 2.7%.
European oil and gas stocks fell roughly 2% on the index. BP declined 3.6%, Equinor lost 5.4%, Var Energi, Eni and Maurel & Prom each fell more than 4%. Neste, Shell and Repsol slid just over 1%, Aker BP dropped 3.2%, while TotalEnergies and OMV were down around 3% each. Portugal’s Galp fell 3.2%, a move compounded by its second‑quarter results and news of an acquisition of a wind‑portfolio.
The broader geopolitical backdrop remained tense. Saudi forces struck Iran‑backed Houthi targets in Yemen in response to recent attacks on Red Sea shipping. Separately, Ukraine reported a strike on an Iranian commercial vessel in the Caspian Sea, killing one sailor and injuring another; Kyiv said the ship was carrying military cargo for Russia, while Tehran condemned the act as a "hostile and criminal act."
Analysts noted that while the pause temporarily eased market nerves, the path to a lasting peace remains uncertain, with unresolved issues surrounding Iran’s nuclear program, potential sanctions relief, and Tehran’s support for proxy groups across the Middle East. The Strait of Hormuz, through which roughly one‑fifth of global oil supply previously flowed, stayed closed, with the United States maintaining its blockade of the waterway.