Energy Stocks Set to Erase All War Gains Amid Peace Talks

US energy stocks are poised to erase all of the gains seen since President Donald Trump started the war against Iran as oil prices pull back on the prospect of further negotiations aimed at ending the more than six-week conflict.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — US energy stocks are poised to erase all of the gains seen since President Donald Trump started the war against Iran as oil prices pull back on the prospect of further negotiations aimed at ending the more than six-week conflict. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The S&P 500 Energy Sector Index fell as much as 3.1% on Tuesday, extending a slump that’s driven it back to where it was at the end of February. That came as Brent crude futures held below $100, leading energy stocks lower even as the supply shock has left oil prices significantly higher than they were before the conflict began.“There’s been such a wide run up in energy stocks, a little bit of a profit taking would make sense,” said Rob Thummel, a senior portfolio manager at Tortoise Capital. “When you see a pretty substantial decline in oil prices, energy stocks tend to follow that.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Yet Thummel said energy stocks were undervalued before the war and he still sees upside for the stocks — regardless of the conflict — as energy demand continues to rise. Energy stocks closed in overbought territory for 61 consecutive days through April 7, according to Bespoke Investment Group LLC. In the past, stocks have tended to underperform over the next month after being overbought for 60 days, Bespoke analysts wrote in a note.Truist Wealth sees the pullback as positive. The firm upgraded the energy sector to attractive from neutral after the ceasefire-induced decline in shares. Truist analysts wrote in a note that technical trends are still constructive as earnings improve and energy prices are expected to remain above pre-war levels.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.