What happened?
A number of stocks jumped in the morning session after crude oil prices fell as President Trump played down the chance of new strikes on Iran. CNBC reported that Brent crude dropped 0.75% to $97.57 a barrel, and West Texas Intermediate slipped 0.4% to $90.45. Trump said he was highly unlikely to order fresh attacks on Iran if talks to end the conflict kept progressing. Attacks on ships near the Strait of Hormuz kept supply concerns in focus.
CNBC also cited UBS, which said oil flows out of the Middle East are still elevated and are weighing on the physical market.
A lower crude price can mean less cash from each barrel for oil and gas producers. That is a headwind for the energy group. Cheaper fuel can help heavy users of fuel, so the same move does not land the same way on every name in the group.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Oilfield services company ProFrac (NASDAQ: ACDC) jumped 5.8%. Is now the time to buy ProFrac? Access our full analysis report here, it’s free.
- Mixed or offshore upstream E&P company Granite Ridge Resources (NYSE: GRNT) jumped 3.5%. Is now the time to buy Granite Ridge Resources? Access our full analysis report here, it’s free.
Zooming in on ProFrac (ACDC)
ProFrac’s shares are extremely volatile and have had 78 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 4.5% on the news that crude oil benchmarks retreated following U.S. midterm election results and shifting foreign policy developments concerning Iran. CNBC reported that both Brent and West Texas Intermediate crude benchmarks dropped alongside European natural gas prices as investors weighed the broader market implications of a Democratic sweep of Congress.
Traders closely analyzed potential policy shifts alongside changing expectations regarding diplomatic pathways versus renewed military strikes involving Iran. Geopolitical tensions in key crude-producing regions often inject an uncertainty premium into commodity prices, and signals pointing toward diplomacy can quickly alleviate supply tightness concerns.
Because integrated oil producers and exploration companies rely directly on robust benchmark pricing to sustain upstream cash flows and revenue growth, the retreat in commodity futures put downward pressure across energy equities.
ProFrac is down 17.9% since the beginning of the year, and at $3.32 per share, it is trading 58.9% below its 52-week high of $8.06 from June 2026. Investors who bought $1,000 worth of ProFrac’s shares at the IPO in May 2022 would now be looking at an investment worth $183.05.
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