US energy stocks fell Wednesday as oil prices hit their lowest since the start of the Iran war, pressured by recovering tanker traffic through the Strait of Hormuz and easing geopolitical risk concerns.
Chevron dropped 2.3%, Exxon Mobil fell 2.5% and ConocoPhillips lost 2.7%. Valero Energy declined 2.3%, Devon Energy fell 2.7%, Occidental Petroleum dropped 3%, and APA Corp. was down 3.5%.
International benchmark Brent crude traded at $73.67 per barrel at 1345GMT, down 4.4% from the previous close, while US benchmark West Texas Intermediate fell 4.3% to $70.17.
Oil prices came under pressure after data from Kpler and MarineTraffic showed 172 vessels transited the Strait of Hormuz from June 18 to 22, lifting daily traffic to an average of 34 ships, or about 25% of pre-conflict levels.
Sentiment also improved after Oman said it was coordinating with the International Maritime Organization on a possible temporary maritime corridor open to all vessels.
US President Donald Trump said Iran agreed to “never have a nuclear weapon,” and that Washington had achieved “a historic peace agreement with Iran to end the conflict in the Strait of Hormuz.”
Expectations of continued Russia-US consultations also eased geopolitical risk perceptions, adding further pressure on crude prices and energy shares.