Oil prices plunge on Iran ceasefire, causing European energy stocks to fall
After weeks of gains, European oil and gas stocks fell sharply Wednesday.
Equinor, a Norwegian company, led the declines, falling 13%. It was followed by its domestic competitors Var Energi and Aker BP, who had benefitted from the disruptions in Qatar's gas flow after the closure of the Strait of Hormuz.
TotalEnergies, France, BP and Shell in Britain, Eni and?Italy were all around 6%-9% down.
Oil prices fell after U.S. president Donald Trump announced that Washington had agreed to an?armistice? with Iran for two weeks, subject to the safe and immediate reopening of?Strait of Hormuz.
WTI fell 15% and Brent futures dropped 13%, while WTI was down $95.0 per barrel. This has eroded the earnings of energy producers.
The 'Oil & Gas Index in Europe was the worst performing sector. It fell 4.3% on a daily basis, and is expected to be its 'biggest drop since April - 2025. The index is still up nearly 30% in 2026. (Reporting and editing by AlunJohn, Danilo Masoni)
(source: Reuters)
