The Strait of Hormuz is open for business! That's good news for many investors, and the S&P 500 is up 1.2% as of 11:15 a.m. ET.
It's less good news for Chevron (CVX 2.99%) stock, however. Shares of the oil giant fell 7% through 11:15 a.m. ET, as investors began pricing in the prospect of lower oil prices.
Image source: Getty Images.
Oil just got cheaper
Oil prices took a bath this morning, with WTI crude oil down more than 13% and Brent crude, the international benchmark, falling 12%. Brent is now below $88, and WTI is at $82 a barrel. That's not cheap -- just a few months ago, you could buy a barrel of Brent for $60. But it's a whole lot cheaper than a couple weeks ago, when Brent was on a collision course with $110!
Thank (or blame) both President Trump and Iran for the decline.
This morning, Iranian Foreign Minister Seyed Abbas Araghchi confirmed the Strait of Hormuz is now open to "all commercial vessels" for the duration of Israel's ceasefire with Lebanon.
In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.
-- Seyed Abbas Araghchi (@araghchi) April 17, 2026
In a series of posts on Truth Social, President Trump confirmed the Strait is open, that Iran is in the process of removing its mines -- but that these facts are "not tied" to any truce in Lebanon, and the U.S. blockade on Iranian ships remains in effect.
NYSE: CVX
Key Data Points
What this means for Chevron stock
Confusing? Absolutely. Contradictory? My head is spinning. But investors are reading the tea leaves today and concluding that the conflict in Iran is nearing its conclusion, and oil may soon resume flowing from the Persian Gulf.
That's bad news for oil prices and for Conoco stock, which, at more than 28 times earnings and with a growth rate projected under 15%, suddenly looks awfully expensive.
