Energy sector stocks fell sharply in pre-market trading, driven by a significant drop in crude oil prices. WTI crude futures settled down 5.1% the previous day following news of a de-escalation in the U.S.-Iran conflict, which eased fears of supply disruptions from the Strait of Hormuz. This pullback in oil removed the war risk premium that had recently supported prices. A concurrent drop in natural gas prices also contributed to the negative sentiment across the energy industry.