Energy stocks moved lower on Monday after crude oil prices plunged by as much as 13% following President Donald Trump’s decision to delay planned military strikes targeting Iranian power plants and energy infrastructure.
Shares of Occidental Petroleum (NYSE:OXY) declined 4%, while Devon Energy (NYSE:DVN) lost 2%. Chevron (NYSE:CVX) slipped 1%, and Exxon Mobil (NYSE:XOM) dropped 1.7%.
Smaller energy producers posted sharper losses. Kosmos Energy (NYSE:KOS) sank 7%, Sable Offshore (NYSE:SOC) fell 6.6%, and CVR Energy (NYSE:CVI) slid 5%. Diamondback Energy (NASDAQ:FANG) edged down 1%, while APA Corporation (NASDAQ:APA) and Cheniere Energy (NYSE:LNG) each retreated 2%.
The downturn followed Trump’s announcement that he had instructed the military to postpone strikes against Iran’s electricity infrastructure. Just days earlier, the president had warned that U.S. forces would target Iran’s power plants if Tehran failed to reopen the Strait of Hormuz within a 48-hour deadline.
Iran later rejected claims that any discussions had taken place with Trump, according to a report from Fars News.
The sharp fall in crude prices pressured energy stocks broadly, particularly companies with significant exposure to oil production and liquefied natural gas exports, which recorded the steepest declines.