Oil Prices and Energy Stocks Sink on Expectations of a Deal to Open the Strait of Hormuz

Oil Prices and Energy Stocks Sink on Expectations of a Deal to Open the Strait of Hormuz

Tue, August 4, 2026 at 9:31 PM GMT+3 1 min read

Key Takeaways

• Oil prices and energy stocks fell Tuesday amid expectations of a U.S.-Iran deal that would reopen the Strait of Hormuz.

• Treasury Secretary Scott Bessent told CNBC in a televised interview that such a deal could be reached later today or tomorrow.

Oil and gas stocks are sliding on signs the Strait of Hormuz could reopen soon.

NRG Energy (NRG) and Diamondback Energy (FANG) were among the biggest decliners in the S&P 500 recently, with shares down about 18% and 3%, respectively, while broader markets gained amid growing optimism about a peace deal between the U.S. and Iran. Shares of Chevron (CVX) and ExxonMobil (XOM) were down 1%, while BP (BP) shares fell 4% despite posting a solid earnings this morning. West Texas Intermediate crude futures dropped more than 5% to just under $76 a barrel.

Treasury Secretary Scott Bessent told CNBC in a televised interview this morning that an Iran deal could be reached today or tomorrow that would open the Strait of Hormuz. Iran has yet to confirm that any talks are ongoing with the U.S. this week.

Energy stocks have been on a hot streak lately, as tensions in the Middle East and supply disruptions sent oil prices soaring. Bank of America analysts wrote Monday that energy stocks rose 12.5% in July, making it the best-performing sector on Wall Street.

President Donald Trump on Monday criticized the industry and said companies have raised prices too much amid the disruptions caused by the Iran war.

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