Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index decreasing 0.7% and the State Street Energy Select Sector SPDR ETF (XLE) down 0.3%.

The Philadelphia Oil Service Sector Index was climbing 3.6%, and the Dow Jones US Utilities Index was shedding 0.6%.

The US and Iran could reach a deal Tuesday or Wednesday to reopen the Strait of Hormuz for commercial ships, Treasury Secretary Scott Bessent said Tuesday in an interview with CNBC.

Front-month West Texas Intermediate crude oil fell 5.5% to $75.92 a barrel, and the global benchmark Brent crude contract dropped 5.2% to $79.40 a barrel. Henry Hub natural gas futures declined 3.8% to $2.68 per 1 million BTU.

In corporate news, BP (BP) reported Q2 underlying replacement cost profit Tuesday of $2.22 per American depositary share, up from $0.90 a year earlier. Separately, BP said Tuesday it plans to sell its US biogas business Archaea after making progress in strengthening its balance sheet and taking steps to simplify the company. BP shares were down 3.7%.