Oil stocks traded broadly lower on Wednesday, with Occidental Petroleum (OXY.US) and Chevron (CVX.US) both falling more than 4%. Petrobras (PBR.US) and ConocoPhillips (COP.US) dropped over 3%, while Imperial Oil (IMO.US) declined nearly 2%. Brent crude futures fell more than 5% intraday before paring losses to trade down 2.81% at the time of writing. Market sentiment was influenced by growing expectations of a ceasefire between the U.S., Israel, and Iran. Analysts noted that U.S. President Trump stated the country would gradually scale back military operations against Iran over the next two to three weeks, suggesting key strategic objectives had largely been met. This reinforced market expectations that the conflict could end sooner than anticipated, boosting global risk appetite.
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