What Happened?
A number of stocks jumped in the afternoon session after the U.S. launched a new wave of military strikes against Iranian targets, as President Donald Trump announced a 20% U.S. toll on cargo transiting the Strait of Hormuz.
After Iran declared the Strait of Hormuz closed "until further notice" over the weekend, President Trump stated the U.S. will reimpose a blockade on Iranian ports and act as the waterway's "guardian." To fund this security, the U.S. will immediately begin charging a 20% fee on all cargo shipped through the strait. The escalation reverses a recent decline in oil prices that followed OPEC+'s decision to raise production, reinserting geopolitical risk into the energy market.
The Strait of Hormuz normally carries about a fifth of global crude and liquefied natural gas supplies. While the physical flow of oil has not been fully halted, the threat of a prolonged disruption directly lifts the revenue outlook for U.S. domestic producers and international majors by raising the baseline price of their reserves. Exploration and production companies with high leverage to crude prices saw steeper gains than diversified majors, reflecting their direct exposure to spot prices. However, the rally's durability depends on whether actual supply is curtailed; if the strait remains navigable, the geopolitical premium could quickly recede.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- U.S. Shale E&P company Texas Pacific Land (NYSE: TPL) jumped 3.7%. Is now the time to buy Texas Pacific Land? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Crescent Energy (NYSE: CRGY) jumped 4.1%. Is now the time to buy Crescent Energy? Access our full analysis report here, it’s free.
- Oilfield Services company Noble Corporation (NYSE: NE) jumped 3.6%. Is now the time to buy Noble Corporation? Access our full analysis report here, it’s free.
Zooming In On Crescent Energy (CRGY)
Crescent Energy’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 3.1% on the news that crude oil dropped to its lowest level since the start of the Iran war, as tankers resumed transit through the Strait of Hormuz and the U.S. and Iran signaled progress toward ending the conflict.
The S&P 500 energy index fell about 2.45%, the weakest major sector even as the broader market held roughly flat. Exxon Mobil (XOM) and Chevron (CVX) each fell in the ~2–2.5% range (exact figures vary by source). The more oil-price-sensitive explorers and producers were hit harder as Occidental (OXY), ConocoPhillips (COP), Devon (DVN) and APA Corp all fell roughly 2.5–3.5%. Oilfield-services names (Halliburton, SLB) and refiners (Valero, Phillips 66, Marathon Petroleum) slipped about 1.5–2.5%.
WTI fell about 4% to near $70 and Brent about 4% to near $74,the lowest since February 27, the day before U.S.–Israeli strikes on Iran, leaving crude down roughly 40% from its wartime peak. The driver was physical and visible: tankers openly crossing Hormuz with transponders on, the IMO citing safety guarantees, and the IEA estimating the UAE exporting near 85% of pre-war levels. Separately, Trump ordered a DOJ probe into why pump prices "haven't fallen faster," accusing oil companies of gouging.
Crescent Energy is up 16.4% since the beginning of the year, but at $9.91 per share, it is still trading 28.8% below its 52-week high of $13.92 from May 2026. Investors who bought $1,000 worth of Crescent Energy’s shares at the IPO in December 2021 would now be looking at an investment worth $588.88.
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