Shares of energy companies plunged alongside oil futures as fears of an energy shock receded.
Oil futures tumbled 16% to $94.41 a barrel in New York, the biggest selloff since the pits of the global pandemic in 2020, after a cease-fire agreement between the U.S. and Iran was set to reopen the Strait of Hormuz to energy tankers.
Iran told mediators it would limit the number of ships crossing the strait to around a dozen a day and charge tolls under the cease-fire struck by President Trump, showing Tehran plans to keep control over the world's most important energy-shipping lane.
"Violations and near‑violations emerged within hours, including reported strikes on regional energy infrastructure and retaliatory actions across the Gulf," said strategists at brokerage Jefferies, in a note to clients. "The Strait of Hormuz remains only partially operational, with limited tanker movement and ongoing coordination with Iranian naval forces."
Exxon Mobil said ongoing conflict in the Middle East is expected to reduce its global oil-and-gas production by 6% in the first quarter compared with the fourth quarter of 2025. Similarly, Anglo-Dutch oil major Shell cut its outlook for first-quarter natural-gas production, even as the war likely boosted oil trading revenue.
Shares of energy companies pared losses late in the session alongside oil futures as questions about the sustainability of the cease-fire arose.
U.S. crude oil inventories rose for a seventh consecutive week, while gasoline and diesel stockpiles fell, according to the U.S. Energy Information Administration.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
April 08, 2026 17:19 ET (21:19 GMT)
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