By Jiahui Huang

Shares of Asian energy companies fell sharply after U.S. President Trump agreed to a two-week cease-fire with Iran, easing fears of prolonged disruptions to oil and gas supplies.

Oil futures fell below $100 a barrel early Wednesday. Front-month Brent crude dropped 13% to $95.34 a barrel, while WTI crude fell 14% to around $97.19 a barrel.

Energy stocks across Asia declined. China Coal Energy led losses on the CSI300, down 8.0%. CNOOC and PetroChina fell 7.1% and 6.0%, respectively, while China Oilfield Services dropped 3.9%. CNOOC also led declines on the Hang Seng Index, down 3.0%.

In Malaysia, Hibiscus Petroleum's shares lost 11% and Petronas Chemicals lost 4.3%. Lotte Chemical Titan fell 2.9% and Dialog Group fell 5.3%.

South Korea's S-Oil fell 3.3%, while Japan's Inpex dropped 6.5%.

The selloff followed easing concerns over prolonged supply disruptions in the Middle East, though analysts warned against viewing the cease-fire as a resolution.

The oil market may breathe a sigh of relief after Trump's announcement for a complete cease-fire, "claiming the military phase of the invasion is largely concluded, but investors should not mistake silence for stability," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

The real test is in the level of damage to critical oil infrastructure, including export hubs such as Kharg Island, Sachdeva added.

Asian economies--mostly net oil importers--remain vulnerable if the conflict in Iran disrupts flows through the Strait of Hormuz, which carries about one-fifth of global oil and gas supply.

China capped domestic fuel price increases on Tuesday to shield consumers and businesses from energy-driven inflation linked to the conflict.

"The true cost of this conflict will be paid at the fuel pump and across global inflation for months to come. The war may be pausing, but the energy shock is just getting started," Sachdeva said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

April 07, 2026 22:20 ET (02:20 GMT)

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