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 SM Energy (NYSE: SM) fell 3.6%. Is now the time to buy SM Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Kosmos Energy (NYSE: KOS) fell 4.8%. Is now the time to buy Kosmos Energy? Access our full analysis report here, it’s free.
- Infrastructure company Tenaris (NYSE: TEN) fell 4.9%. Is now the time to buy Tenaris? Access our full analysis report here, it’s free.
Zooming In On Tenaris (TEN)
Tenaris’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 4.4% as geopolitical tensions in the Middle East escalated, pushing crude oil prices sharply higher.
President Trump's televised remarks signaled that the U.S. conflict with Iran could continue for several more weeks, increasing investor nervousness. This uncertainty drove West Texas Intermediate and Brent crude prices up. With supply potentially constrained, markets expected that higher global oil prices would be reflected in stronger earnings for oil and gas companies.
Tenaris is up 78.9% since the beginning of the year, but at $39.15 per share, it is still trading 12% below its 52-week high of $44.47 from May 2026. Investors who bought $1,000 worth of Tenaris’s shares 5 years ago would now be looking at an investment worth $4,399.
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