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Sector Update: Energy Stocks Decline Tuesday Afternoon

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Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index decreasing 0.6% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.7%.

The Philadelphia Oil Service Sector Index was falling 2.1%, and the Dow Jones US Utilities Index rose 1.1%.

Oil prices fell Tuesday as a framework to end the Middle East conflict eased global supply fears. The US and Iran have agreed to end their war and reopen the Strait of Hormuz, which is the world's most important chokepoint for crude flows. The two sides are scheduled to sign their peace deal in Switzerland on Friday, which would kick off another round of negotiations on Tehran's nuclear program as Iran seeks sanctions relief.

Front-month West Texas Intermediate crude oil fell 6.1% to $75.82 a barrel, and the global benchmark Brent crude contract dropped 5.4% to $78.66 a barrel. Henry Hub natural gas futures rose 3% to $3.24 per 1 million BTU.

In sector news, the US will let Iran sell oil and fuel immediately under the deal the two nations reached to end the war, The Wall Street Journal reported. The provision also covers necessary services to sell oil, including banking, transportation and insurance, the report said.

In corporate news, Sable Offshore (SOC) shares fell nearly 6% after the company said it launched a proposed senior secured term loan of up to $1 billion to refinance a secured term loan with Exxon Mobil (XOM).

Equinor (EQNR) said Tuesday it will double share buyback to $3 billion in 2026 and expects annual share repurchases of $2 billion to $4 billion from 2027. Equinor shares were down 1.4%.

ConocoPhillips (COP) is set to become the first major US oil and gas company to sign a development agreement with Syria's new government, the Financial Times reported. ConocoPhillips shares were shedding 1.4%.

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