Energy Stocks Just Had Their Worst Day In A Year — 20 Stocks Hit By Trump's Ceasefire

The oil trade that defined the first quarter of 2026 broke on Wednesday.

The energy sector — as tracked by State Street Energy Select Sector SPDR ETF (NYSE:XLE) — fell 4.7% on Wednesday morning, its worst single-session loss since April 10, 2025.

The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) dropped 6.3%, also its worst day in exactly a year.

President Donald Trump announced a conditional two-week ceasefire and Strait of Hormuz reopening late Tuesday, sending WTI crude futures down more than 18% on Wednesday — the sharpest single-session drop since April 2020.

Energy stocks, which had surged 40%–50% since Feb. 28 as the Strait closure drove oil above $112, reversed with the same velocity that built the rally.

The war premium that had built up over six weeks of Strait of Hormuz disruption unwound in hours, and the stocks that had been riding it had nowhere to hide.

XLE And XOP ETF Eye Worst Session Since Tariff Shock

Both XLE and XOP charts tell the same structural story.

Since U.S.-Israeli strikes on Iranian targets began on Feb. 28, each energy-linked ETF surged almost vertically — XLE from about $42 to above $63, and XOP from roughly $128 to nearly $190.

Wednesday's session abruptly reversed that move, pulling both funds back toward early-March levels.

In a single day, the two ETFs erased most of the gains accumulated since the start of the Iran war.

If losses hold, this would mark their worst session since April 10, 2025, when President Donald Trump's tariff escalation on China triggered a broad global selloff on recession fears.

The Transmission Chain Running In Reverse

For six weeks, the macro transmission ran in one direction.

The Iran conflict closed the Strait of Hormuz, the Strait cut the energy supply, the supply shock pushed WTI above $100, and higher oil triggered a wave of energy earnings upgrades that sent XLE and XOP surging 40%–50%.

Every link repriced upward. Energy became a momentum trade with a fundamental catalyst underneath it.

On Wednesday, that chain ran in reverse. The ceasefire sent a Strait reopening signal, the signal deflated the supply premium, the premium deflation sent WTI down 18%, and falling oil put energy earnings estimates at risk — triggering a forced unwind of the most concentrated sectoral long in the market.

The speed of the reversal reflects how completely the rally was correlated to a single geopolitical variable.

When that variable shifted — conditionally, for only two weeks — the sector had no second thesis to fall back on

Twenty energy names are paying the ceasefire bill on Wednesday.

XLE — Worst 10 Movers On Wednesday

Company	Last	Chg %
APA Corp. (NASDAQ:APA)	$37.25	−13.29%
Diamondback Energy (NASDAQ:FANG)	$176.78	−9.57%
Occidental Petroleum (NYSE:OXY)	$57.29	−8.98%
Devon Energy (NYSE:DVN)	$46.28	−7.35%
Coterra Energy (NYSE:CTRA)	$32.38	−7.26%
ConocoPhillips (NYSE:COP)	$122.23	−7.24%
Valero Energy (NYSE:VLO)	$233.75	−7.05%
EOG Resources (NYSE:EOG)	$134.23	−6.93%
Exxon Mobil (NYSE:XOM)	$153.68	−6.24%
Halliburton (NYSE:HAL)	$36.53	−5.65%

XOP — Worst 10 Movers On Wednesday

Company	Last	Chg %
Venture Global (NYSE:VG)	$13.35	−16.52%
Kosmos Energy (NYSE:KOS)	$2.59	−14.52%
APA Corp. (NASDAQ:APA)	$37.25	−13.29%
SM Energy (NYSE:SM)	$27.81	−11.29%
VAALCO Energy (NYSE:EGY)	$5.74	−10.53%
Par Pacific Holdings (NYSE:PARR)	$58.24	−9.85%
Talos Energy (NYSE:TALO)	$14.60	−9.65%
Diamondback Energy (NASDAQ:FANG)	$176.78	−9.57%
Matador Resources (NASDAQ:MTDR)	$58.50	−9.29%
Occidental Petroleum (NYSE:OXY)	$57.29	−8.98%

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