State Street Energy Select Sector SPDR ETF is trading 3.2% down today as crude prices drop sharply following a surprise U.S.–Iran peace agreement and plans to reopen the Strait of Hormuz.
- Crude oil prices slid more than 4–5% overnight, significantly easing global supply risks and inflation concerns.
- Energy is one of the few sectors trading lower in the pre-market as broader markets rotate into growth and technology stocks.
- The geopolitical breakthrough and the scheduled reopening of the Strait of Hormuz have removed the risk premium previously supporting energy valuations.