The energy sector, as measured by the XLE ETF, dropped in pre-market trading following a significant decline in crude oil prices. This was driven by reports of a potential deal between the U.S., Iran, and Oman to reopen the Strait of Hormuz, which eased geopolitical supply concerns. The commentary suggests that the "crisis premium" that had supported energy stocks was beginning to unwind, leading to a rotation out of the sector.
Energy Stocks Decline on Easing Geopolitical Tensions