April 14, 2026 – New expectations for peace negotiations between the United States and Iran have significantly reduced geopolitical tensions, causing oil prices to drop.
The energy sector (
#XLE ) fell by as much as 4.7%, with several stocks dropping by more than 9%. The sell-off completely erased the 'war premium' that energy stocks had gained since the Trump administration's actions against Iran.
Although the de-escalation has supported risky assets overall, the oil-sensitive energy complex experienced strong profit-taking as investors exited positions based on fears of supply disruption.