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Sector Update: Energy

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Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index falling 1.5% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 1.6%.

The Philadelphia Oil Service Sector Index was shedding 2.4%, and the Dow Jones US Utilities Index rose 1%.

Oil prices declined on Tuesday after President Donald Trump said the Iran war could end within days. Trump told reporters in New York that a diplomatic resolution to the Middle East conflict could be reached in "two or three days," CNBC reported. The critical Strait of Hormuz, which remains effective shut, would reopen "immediately" after the deal, Trump reportedly said.

Front-month West Texas Intermediate crude oil fell 3.9% to $87.77 a barrel, and the global benchmark Brent crude contract dropped 3% to $91.43 a barrel. Henry Hub natural gas futures increased 0.2% to $3.15 per 1 million BTU.

In corporate news, BP (BP) said Tuesday that the company will be run under a new, simplified organizational structure composed of two distinct business segments -- Upstream and Downstream -- beginning July 1. BP shares were down 2.6%.

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