Occidental Petroleum's stock experienced a significant pre-market plunge of 5.05% on Friday, reflecting broad weakness in the energy sector during the early trading session.

The decline follows an announcement from Iran's foreign minister stating that the Strait of Hormuz will remain completely open for the remaining period of the ceasefire. This development reduces immediate geopolitical risk concerns in one of the world's most critical oil shipping lanes.

The Strait of Hormuz is a vital chokepoint for global oil shipments, and its secure operation typically reduces the geopolitical risk premium embedded in oil prices. Lower oil price expectations negatively impact the valuation of oil exploration and production companies like Occidental Petroleum, leading to the observed pre-market sell-off.