NEW YORK, April 2, 2026, 07:13 EDT
Exxon Mobil dropped 5.2% to finish at $160.78, dragging U.S. energy shares lower as oil declined on hopes the U.S. might soon deescalate with Iran. The slide wiped out roughly $36 billion in Exxon’s market value—its worst single-day loss since 2008, according to Dow Jones Market Data cited by the Wall Street Journal. Chevron slipped 4.6%, while ConocoPhillips ended down 2.7%.
The reversal stood out because energy had been one of the rare bright spots for Wall Street in an otherwise tough quarter. Sherwood noted the S&P 500 energy sector jumped 10% in March and finished the first quarter up 37%. Numbers from Yahoo Finance showed the Energy Select Sector SPDR climbed 37.9% for the year through March 31. Barron’s reported Exxon and Chevron shares spiked 41% and 36%, respectively, in the quarter leading up to Wednesday’s selloff.
Oil prices slid Wednesday after President Donald Trump remarked the U.S. would leave Iran “pretty quickly.” Brent dropped 2.7% to settle at $101.16 a barrel; U.S. crude shed 1.2%. The S&P 500 energy index tumbled 3.9%, even as the broader S&P 500 gained 0.72%. That’s the market pricing out some of the war premium—value attached to supply fears. Reuters
“Trump’s comments keep shifting,” Thomas Martin, senior portfolio manager at Globalt Investments, said to Reuters on Wednesday. Fast forward to Thursday—Russ Mould, investment director at AJ Bell, wasn’t subtle: “Uncertainty is kryptonite for markets.” Reuters
Exxon faced outsized risk from that reversal. With roughly 20% of its oil and gas production tied to the Middle East, according to Reuters, the company’s earnings revisions since the war started have been less dramatic than those of several peers, CFRA’s Stewart Glickman noted. Regional involvement can drive prices up, but it also puts output and deliveries in jeopardy.
Earlier, analysts had been steadily raising their estimates for the sector. Brent crude clocked in at an average of $97 a barrel for March, a jump of 33% from the previous month. Leo Mariani, senior research analyst at Roth Capital Partners, described the first quarter as likely “phenomenal” for the majors. So Wednesday’s slide drew notice: traders began shifting their focus from recent windfalls to just how quickly crude prices might slide if the Strait of Hormuz gets back online. Reuters
Thursday morning saw another reversal. Oil jumped close to 7% after Trump pledged ongoing attacks on Iran, pushing Brent up to $108.81 a barrel. Shares of Exxon climbed 3% and Chevron added 2.6% before the bell, showing just how quickly sentiment in the sector now reacts to every twist in the conflict story.
That sets up a tricky spot for both bulls and bears. Phillip Nova’s Priyanka Sachdeva flagged the potential for oil to push to new highs if maritime risks escalate. Meanwhile, Reuters noted OPEC+ could weigh another output hike on Sunday—though extra barrels would show up only if Hormuz is back online. For Exxon and other majors, upcoming sessions might be less about fundamentals and more about whether traders see a credible path out of the Iran standoff.
