Crude prices fell sharply as the deal allows Iranian exports to resume within 30 days but remain 20% above prewar levels.
Oil prices dropped Monday after the U.S. and Iran reached a framework agreement to end hostilities, clearing the way for the Strait of Hormuz to reopen within 30 days. The move triggered a sell-off in energy stocks, with Exxon Mobil (XOM) among the worst performers in the S&P 500.
Despite the decline, crude prices still trade about 20% above levels seen before the conflict began. Analysts noted that full normalization of supply chains could take months, keeping upward pressure on prices in the near term.
Energy sector equities led losses in early trading, reflecting investor caution over the pace of market rebalancing.