ExxonMobil (XOM) and Chevron (CVX) Tumble as Trump Predicts Swift End to Iran Conflict

TLDR

• Energy sector plummeted Tuesday following Trump’s prediction of Iran conflict resolution “very soon”
• Brent crude plunged more than 9% to $89.94; WTI declined 8.5% to $86.72 per barrel
• Occidental Petroleum led S&P 500 premarket declines, sliding 3.2%
• G-7 nations announced readiness to tap strategic petroleum reserves, potentially pressuring prices further
• CrowdStrike gained ground following Morgan Stanley’s upgrade, highlighting AI capabilities

Oil stocks experienced significant declines Tuesday morning following President Donald Trump’s statement that the Iran conflict would conclude “very soon,” sparking a dramatic selloff in both crude oil markets and energy sector equities.

Brent crude futures plummeted over 9% to reach $89.94 per barrel. West Texas Intermediate declined 8.5% to settle at $86.72. These benchmarks had been hovering near their highest trading levels since 2022 prior to the president’s remarks.

Occidental Petroleum topped the list of S&P 500 energy sector losers during premarket hours, declining 3.2%. ConocoPhillips retreated 1.7%.

Both Chevron and ExxonMobil slipped more than 1%. These major oil companies were already experiencing headwinds as Middle Eastern hostilities directly impacted their business operations.

Chevron Corporation, CVX

Chevron had suspended activities at an offshore gas installation near Israel’s coastline. ExxonMobil’s liquefied natural gas collaborator, QatarEnergy, faced delivery challenges as tankers were blocked from navigating through the Persian Gulf.

G-7 Considers Emergency Oil Reserve Release

Compounding the bearish pressure, the Group of Seven economies announced Monday their willingness to deploy strategic oil reserves if circumstances warrant. The G-7 maintains approximately 1.2 billion barrels in emergency stockpiles.

U.S. equity index futures also traded in negative territory by Tuesday morning. Dow futures declined 71 points, S&P 500 futures retreated 12 points, and Nasdaq 100 futures dropped 24 points.

CrowdStrike Rises on Morgan Stanley Upgrade

The session wasn’t uniformly negative. CrowdStrike shares advanced after Morgan Stanley analysts elevated their rating on the cybersecurity provider. They highlighted the company’s robust artificial intelligence capabilities and favorable expansion prospects.

Hewlett Packard Enterprise gained ground despite posting quarterly sales figures that fell short of analyst projections. Observers emphasized robust appetite for its AI-focused hardware products.

Oracle shares traded modestly higher ahead of its quarterly earnings report scheduled for after market close. Market participants were monitoring closely.

BioNTech American Depositary Receipts declined after the pharmaceutical company provided disappointing revenue projections for fiscal year 2026.

Vail Resorts reduced its annual guidance following an exceptionally poor snowfall season across western U.S. regions that severely limited accessible ski terrain throughout February.

Bunge Global advanced after the agricultural commodities firm unveiled a $3 billion stock repurchase initiative.

Carnival Corporation dipped slightly after Bernstein analysts cautioned that its strategy of avoiding fuel hedging could create vulnerability to energy cost increases stemming from the Iran situation.

Kohl’s retreated following disappointing quarterly sales figures, extending the department store chain’s recent underperformance streak.

Casey’s General Stores edged lower after third-quarter revenues fell below Wall Street estimates.

Vertex Pharmaceuticals climbed after preliminary results from a late-stage clinical trial of its investigational treatment for a rare kidney autoimmune disorder demonstrated encouraging outcomes.

As of Tuesday morning, petroleum markets continued experiencing significant fluctuations, with market participants monitoring for additional commentary from the White House or G-7 leadership regarding future actions.

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