BP and Shell shares slide as US-Iran 'framework deal' sees crude oil prices ease

UK oil majors fell sharply in early trading as crude prices tumbled on hopes of a US-Iran agreement that could reopen the Strait of Hormuz and ease pressure on global energy supplies. The move points to a meaningful geopolitical de-escalation risk premium coming out of oil, which is negative for upstream energy stocks and broader crude-linked commodities.

Analysis

UK oil majors fell sharply in early trading as crude prices tumbled on hopes of a US-Iran agreement that could reopen the Strait of Hormuz and ease pressure on global energy supplies. The move points to a meaningful geopolitical de-escalation risk premium coming out of oil, which is negative for upstream energy stocks and broader crude-linked commodities.