Oil stocks drop 5% as Iran peace talks ease geopolitical tensions and lower oil prices.

Shares of Exxon Mobil and Chevron fell about 5% after reports of Iran's President preparing to end the conflict reduced the geopolitical risk premium that had pushed oil prices above $100 per barrel. This easing of tensions is causing oil prices to retreat from their recent highs, impacting energy stocks that had surged earlier in the year. Chevron also faces additional pressure due to operational issues at its Wheatstone LNG plant. Despite the selloff, both companies remain strong performers year-to-date, supported by structural supply constraints in the oil market. The market will watch closely to see if oil prices stabilize above or below $100, which will influence whether this is a short-term correction or a longer sector rotation.