What Happened?

A number of stocks fell in the afternoon session after crude oil dropped to its lowest level since the start of the Iran war, as tankers resumed transit through the Strait of Hormuz and the U.S. and Iran signaled progress toward ending the conflict. 

The S&P 500 energy index fell about 2.45%, the weakest major sector even as the broader market held roughly flat. Exxon Mobil (XOM) and Chevron (CVX) each fell in the ~2–2.5% range (exact figures vary by source). The more oil-price-sensitive explorers and producers were hit harder as Occidental (OXY), ConocoPhillips (COP), Devon (DVN) and APA Corp all fell roughly 2.5–3.5%. Oilfield-services names (Halliburton, SLB) and refiners (Valero, Phillips 66, Marathon Petroleum) slipped about 1.5–2.5%. WTI fell about 4% to near $70 and Brent about 4% to near $74,the lowest since February 27, the day before U.S.–Israeli strikes on Iran, leaving crude down roughly 40% from its wartime peak. 

The driver was physical and visible: tankers openly crossing Hormuz with transponders on, the IMO citing safety guarantees, and the IEA estimating the UAE exporting near 85% of pre-war levels. Separately, Trump ordered a DOJ probe into why pump prices "haven't fallen faster," accusing oil companies of gouging.

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:

• Mixed or Offshore Upstream E&P company Centrus Energy (NYSE: LEU) fell 4.4%. Is now the time to buy Centrus Energy? Access our full analysis report here, it’s free.
• Oilfield Services company Helix Energy Solutions (NYSE: HLX) fell 4%. Is now the time to buy Helix Energy Solutions? Access our full analysis report here, it’s free.

Zooming In On Centrus Energy (LEU)

Centrus Energy’s shares are extremely volatile and have had 88 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 previous big move we wrote about was 2 days ago when the stock dropped 4.8% on the news that the U.S. Treasury formally issued a 60-day general license authorizing the production and sale of Iranian crude oil, extending a de-escalation trade that began when Washington and Tehran signed an interim peace framework the previous week. 

Energy markets were not just reacting to new Iranian barrels entering supply, they were pricing out a war. The U.S. and Israel launched strikes on Iran on February 28, 2026, triggering the largest disruption to global energy supply since the 1970s. Iran closed the Strait of Hormuz, which normally handles roughly 20% of the world's oil and LNG, pushing Brent from approximately $73 pre-war to $126 at its peak. 

The 14-point memorandum of understanding signed the previous week commits Iran to reopening the strait and allowing IAEA inspectors to return. The Treasury general license, announced by Secretary Scott Bessent as part of that peace framework, is the formal implementation step clearing Iranian barrels to flow legally through August 21. Each confirmed step in the diplomatic process removes another layer of the roughly $50-per-barrel war premium still embedded in crude. 

However, the read-through carries meaningful caveats that the original draft overlooked. Iran re-announced the closure of the Strait of Hormuz over the weekend, citing Israeli strikes in Lebanon as ceasefire violations, even as maritime data from Windward and Lloyd's List showed tankers continuing to transit. JD Vance arrived in Switzerland on Sunday and mediators cited "encouraging progress," but the final deal was not signed. The IEA also warned that if the framework held fully, 2027 global supply could outstrip demand by 5.05 million barrels per day, a structural headwind for energy equities extending well beyond the session's move.

Centrus Energy is down 38.8% since the beginning of the year, and at $166.84 per share, it is trading 61.7% below its 52-week high of $436 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Centrus Energy’s shares 5 years ago would now be looking at an investment worth $6,270.

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