Oil stocks sink as Brent trades below $100

Investing.com -- Oil prices tumbled sharply on Wednesday, dragging energy stocks lower across global markets, after U.S. President Donald Trump announced a pause to the American military's "Project Freedom" operation aimed at reopening the Strait of Hormuz.

Trump cited "great progress" toward a "complete and final agreement" with Iranian representatives as the reason for suspending the operation, saying the pause would last a "short period" while they see whether negotiations with Tehran can be finalized.

The news sent crude tumbling. Brent is down more than 10% to around $97.97 per barrel, slipping below the significant $100 mark, while West Texas Intermediate dropped over 11% to $90.35.

European energy majors have seen significant sell-offs so far. In London, BP shed more than 5% to 542.2p, while Shell declined 4.5% to 3,165.5p. French giant TotalEnergies fell 5.4% to €75.07 in Paris.

Across the Atlantic, U.S. energy stocks are also in the red ahead of the opening bell.

Occidental Petroleum led declines with a premarket drop of 7.6%, followed by Marathon Petroleum down 6.3%, ConocoPhillips off 5.4%, Chevron lower by 5.1%, and ExxonMobil sliding 4.9%.

The prospect of easing geopolitical tensions in the Gulf has also lifted global markets. However, Trump warned in his Truth Social post that the current blockade “will remain in full force and effect” during this period.

In April, Iran reopened the Strait of Hormuz before closing it shortly after, following the U.S.'s announcement that it would not end its blockade of Iranian ports.

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