For most of last week, oil was sliding down and energy stocks followed in the same direction.
Traders had bet a U.S.-Iran deal would calm the region and reopen shipping lanes, so crude price fell lower for days, and Exxon Mobil (XOM) fell with it, closing red for seven straight sessions
Then one headline out of Tehran reset the market outlook on June 1. Oil futures snapped higher, energy names rallied, and Exxon went from a week of losses to one of the day’s sharper rebounds. Why one Iran headline sent Exxon (XOM) stock higher on June 1 Iran’s Tasnim news agency reported that Tehran was halting negotiations and the exchange of documents with Washington through mediators, blaming a broken ceasefire and fresh clashes in Lebanon, NBC News reported.
Traders moved fast. West Texas Intermediate futures closed up 5.93% at $92.54 a barrel, while Brent settled 4.24% higher at $97.79 and touched about $98 intraday, CNBC reported. More Energy Stocks: Iran also threatened to fully close the Strait of Hormuz, the waterway that carries roughly a fifth of the world’s crude.