What Happened?
A number of stocks fell in the afternoon session after President Donald Trump announced a two-week suspension of attacks on Iran, leading to a massive collapse in crude oil prices.
The "double-sided" ceasefire and the subsequent reopening of the Strait of Hormuz effectively removed the "war premium" that propped up energy prices. As the threat of a prolonged conflict recedes and the U.S. discusses sanctions relief for Iran, the outlook for global oil supply is projected to shift from a deficit to a potential surplus. Investors rotated out of these defensive "inflation hedges" and back into growth-oriented sectors, viewing the current ceasefire as a sign that the peak of the energy-driven profit cycle may have passed.
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:
- Mixed or Offshore Upstream E&P company Murphy Oil (NYSE: MUR) fell 9.2%. Is now the time to buy Murphy Oil? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company SM Energy (NYSE: SM) fell 9%. Is now the time to buy SM Energy? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Northern Oil and Gas (NYSE: NOG) fell 5.7%. Is now the time to buy Northern Oil and Gas? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Crescent Energy (NYSE: CRGY) fell 7.7%. Is now the time to buy Crescent Energy? Access our full analysis report here, it’s free.
- Oilfield Services company Patterson-UTI (NASDAQ: PTEN) fell 8.6%. Is now the time to buy Patterson-UTI? Access our full analysis report here, it’s free.
Zooming In On Murphy Oil (MUR)
Murphy Oil’s shares are very volatile and have had 21 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 6 days ago when the stock gained 3.1% on the news that geopolitical tensions in the Middle East escalated, pushing crude oil prices sharply higher.
President Trump's televised remarks signaled that the U.S. conflict with Iran could continue for several more weeks, increasing investor nervousness. This uncertainty drove West Texas Intermediate and Brent crude prices up. With supply potentially constrained, markets expected that higher global oil prices would be reflected in stronger earnings for oil and gas companies.
Murphy Oil is up 21.7% since the beginning of the year, and at $39.55 per share, it is trading close to its 52-week high of $42.74 from April 2026. Investors who bought $1,000 worth of Murphy Oil’s shares 5 years ago would now be looking at an investment worth $2,375.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
