By George Glover

Shares in Exxon Mobil and Chevron were tumbling Wednesday as oil prices slumped, with investors becoming more certain the U.S. and Iran are close to agreeing a peace deal.

Exxon dropped 3.9% and Chevron fell 3.7% ahead of the opening bell. Futures tracking the S&P 500 were 0.8% higher.

The selloff came after a report said the U.S. and Iran were nearing a peace agreement, sparking a sharp drop in oil prices in early trading. West Texas Intermediate U.S. futures slumped 9.2% to $92.90 a barrel.

The Trump administration believes it is close to agreeing with Tehran on a one-page memorandum of understanding that would end the war in the Middle East, Axios reported, citing two U.S. officials and two other sources briefed on the issue.

President Donald Trump said in a post on Truth Social late Tuesday that he would pause U.S. efforts to escort commercial ships through the Strait of Hormuz, because "Great Progress" has been made toward a truce.

Exxon and Chevron weren't the only oil stocks tumbling on Wednesday.

APA plunged 6.6%, ConocoPhillips slid 4.4%, Devon Energy fell 5.1%, and Diamondback Energy dropped 4.5% in premarket trading.

Occidental Petroleum slumped 6.3% after the oil-and-gas company reported a sharp surge in adjusted profit but weaker-than-expected net sales for the first quarter.

Write to George Glover at george.glover@dowjones.com

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May 06, 2026 06:47 ET (10:47 GMT)

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