A two-week ceasefire in the US–Iran conflict and signs that traffic through the Strait of Hormuz could resume triggered a slump in oil prices, pushing UK energy stocks lower; BP and Shell led the declines. The reduction in geopolitical risk removes a near-term risk premium for oil, weighing on energy producers and likely pressuring sector performance in the short term.
A two-week ceasefire in the US–Iran conflict and signs that traffic through the Strait of Hormuz could resume triggered a slump in oil prices, pushing UK energy stocks lower; BP and Shell led the declines. The reduction in geopolitical risk removes a near-term risk premium for oil, weighing on energy producers and likely pressuring sector performance in the short term.
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