Occidental Petroleum's stock fell 5.09% in pre-market trading on Monday, as the energy sector faced broad selling pressure.

The decline came after crude oil prices tumbled to their lowest levels since March, following news that the United States and Iran have reached a preliminary agreement to end their months-long conflict and reopen the vital Strait of Hormuz. The deal reduces the risk of oil supply disruptions that had supported energy prices and shares during the conflict.

Analysts noted that markets are pricing in a return to normality, although they cautioned that physical oil flows may take time to fully resume. The drop in oil prices negatively impacts exploration and production companies like Occidental, whose revenues are closely tied to commodity prices.