Energy Stocks Fall as Oil Slips on Hopes for More U.S.-Iran Talks Despite Blockade

energy stocks and funds fell in morning trading. Apache fell 6%; Devon and Occidental fell 5%; ConocoPhillips fell 4%; Exxon Mobil, United States Oil Fund LP, Chevron, ProShares Ultra Bloomberg Crude Oil, Spdr S&P Oil & Gas Exploration & Production Etf, United States Brent Oil Fund LP, EOG Resources, and TotalEnergies fell 3%.

Oil slid on signs Washington and Tehran may revive talks following the start of a US blockade of the Strait of Hormuz, with traders monitoring vessels to see whether shipping traffic through the vital chokepoint will resume.

Brent fell as much as 4.5% to trade near $96, while West Texas Intermediate dropped as much as 6.9%. Iran is considering a short-term pause to its shipments through the Strait of Hormuz to avoid testing a US blockade and scuppering a fresh round of peace talks, according to a person familiar with Tehran’s deliberations. Turkey will host regional powers this week to discuss cease-fire proposals and a potential reopening of the strait, the Wall Street Journal reported.

The US and Iran are in discussions on holding another round of face-to-face negotiations for a longer-term ceasefire, according to people familiar with the matter. The goal is to arrange them before the expiration of a two-week pause in hostilities that was announced April 7, they said. Reuters reported that negotiating teams could return to Pakistan this week.