What Happened?

A number of stocks fell in the morning session after the price of oil fell sharply as the U.S. and Iran announced a peace deal to end their conflict. 

The mechanism works through a tight chain of dependency. SLB, Halliburton, and Baker Hughes do not produce oil, they get paid only when producers drill wells. A Permian shale operator that set its 2026 drilling budget assuming $100 oil now reassesses each planned well against $80 WTI. At lower prices, fewer wells clear the economic hurdle, and producers respond by deferring rig contracts, cutting hydraulic fracturing schedules, and cancelling completion equipment orders.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Oilfield Services company Select Water Solutions (NYSE: WTTR) fell 2.8%. Is now the time to buy Select Water Solutions? Access our full analysis report here, it’s free.
• Oilfield Services company Core Laboratories (NYSE: CLB) fell 2.6%. Is now the time to buy Core Laboratories? Access our full analysis report here, it’s free.

Zooming In On Select Water Solutions (WTTR)

Select Water Solutions’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 4.8% on the news that crude oil prices dropped amid easing geopolitical tensions in the Middle East. Brent crude, the international benchmark, dropped by over 10% to below $90 a barrel, with U.S. West Texas Intermediate crude seeing a similar decline. 

The sharp sell-off was triggered by several developments, including a 10-day ceasefire between Israel and Lebanon and optimism surrounding potential U.S.-Iran negotiations. Compounding the price pressure, Iran announced the reopening of the Strait of Hormuz, a critical chokepoint for global oil tankers. Easing tensions in the region reduce the 'risk premium' on oil prices, calming market fears about potential supply disruptions and leading to lower prices. The oilfield services sector acts as the industry's "first responder" to price volatility. 

When crude prices fall, exploration and production (E&P) companies typically respond by slashing capital expenditure. This immediate belt-tightening leads to canceled contracts for drilling rigs and completion crews, leaving service providers with expensive, idle equipment and a shrinking backlog of work almost overnight.

Select Water Solutions is up 65.3% since the beginning of the year, and at $18.34 per share, it is trading close to its 52-week high of $20.04 from May 2026. Investors who bought $1,000 worth of Select Water Solutions’s shares 5 years ago would now be looking at an investment worth $2,897.

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