🔴 State Street Energy Select Sector SPDR ETF is trading 3.6% down today as U.S.–Iran peace deal eases supply risks

State Street Energy Select Sector SPDR ETF is trading 3.6% down today as crude oil prices sell off following a surprise U.S.–Iran peace agreement and plans to reopen the Strait of Hormuz.

• The geopolitical breakthrough has significantly eased supply disruption concerns, putting immediate pressure on energy producers’ margins.
• Broader U.S. equities are rising as lower energy costs alleviate inflation fears, sparking an investor rotation out of energy and into rate-sensitive technology and AI sectors.