Why Exxon, Chevron, and ConocoPhillips Shares Are Dropping Today

TLDR

• Exxon, Chevron, and ConocoPhillips shares fell sharply in premarket trading after a U.S.-Iran ceasefire was announced
• Brent crude fell over 10% to $96.73 and WTI dropped nearly 14% to $95.45
• Trump announced a two-week ceasefire conditional on Iran fully reopening the Strait of Hormuz
• Oil stocks had surged 34–42% since the start of the year due to Middle East conflict
• Lower oil prices benefit refiners like Valero and Marathon but hurt oil majors and oilfield services firms

President Donald Trump announced a two-week ceasefire between the U.S., Israel, and Iran late Tuesday, sending oil prices tumbling and wiping out gains across the energy sector.

The announcement came just before Trump’s self-imposed April 7th deadline, at 8 p.m. Eastern Time. Trump had warned that Iran faced devastating consequences if it did not reopen the Strait of Hormuz.

He posted on Truth Social at 6:32 p.m. ET that Iran had agreed to a ceasefire, conditional on the “complete, immediate, and safe opening” of the Strait of Hormuz.

The Strait of Hormuz carries roughly 20% of the world’s crude oil supply. Its closure had been a key driver of higher oil prices in recent months.

Oil prices had topped $110 a barrel earlier, after Trump warned over the weekend that the U.S. would target Iran’s power plants and bridges if the waterway remained blocked.

Following the ceasefire news, Brent crude futures dropped more than 10% to $96.73. West Texas Intermediate fell nearly 14% to $95.45, pushing below $100 per barrel.

Exxon Mobil dropped 6.3% in premarket trading. Chevron fell 4.8%, and Occidental Petroleum was down 8.5%. Oil exploration firm APA fell 10%, while Diamondback Energy and Devon Energy lost 7.7% and 6.4% respectively.

Exxon Mobil Corporation, XOM

ConocoPhillips also saw heavy losses. The three major oil producers — Exxon, Chevron, and ConocoPhillips — had gained around 37%, 34%, and 42% respectively since January 1st.

First-Quarter Gains Now at Risk

Exxon had its best-ever quarter in Q1 2026, surging 41%. Chevron jumped 36% over the same period. Both stocks had climbed further since the conflict began.

Exxon also filed a regulatory update Wednesday saying it expects oil production to fall roughly 6% in Q1 compared to Q4 2025, due to disruptions in Qatar and the UAE.

The company estimated that pricing would boost upstream earnings by $2.1 to $2.9 billion from the prior quarter. However, volume disruptions are expected to cut $400 million to $800 million from upstream and downstream operations combined.

Exxon will release full Q1 earnings on May 1.

Shell reported that liquefied natural gas production would also fall in Q1 due to the war’s impact on Qatar operations. Shell shares fell 5.4% in London and 4.2% in U.S. premarket trading.

Refiners Stand to Benefit

Not all energy companies are losing out. Lower crude prices improve refining margins.

Valero Energy, Phillips 66, and Marathon Petroleum are among the refiners that could see a boost from cheaper oil.

Oilfield services companies like Halliburton and Schlumberger, however, face earnings pressure alongside the oil majors.

Trump noted that most points of contention between the U.S. and Iran have been agreed upon. The two-week window is intended to finalize those agreements.

If the ceasefire holds and the Strait of Hormuz reopens, analysts expect oil prices could fall further in the weeks ahead.

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