The Strait of Hormuz is open for business! That's good news for many investors, and the S&P 500 is up 1% as of 10:20 a.m. ET.
It doesn't seem to be very good news for ConocoPhillips (COP +1.99%) stock, however. Shares of the oil giant fell 6.6% as investors began pricing in the prospect of lower oil prices.
Image source: Getty Images.
Why is oil getting cheaper?
Oil prices took a huge bath, with WTI and Brent crude oil both falling 11%. WTI il is selling for just over $84 a barrel, and Brent costs less than $89. 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 seemed on a collision course with $110!
Thank (or blame) President Trump and Iran for the price collapse.
This morning, Iranian Foreign Minister Seyed Abbas Araghchi confirmed the Strait of Hormuz is now open for "all commercial vessels" and for the duration of the ceasefire announced between Israel and 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
On Truth Social, President Trump quickly confirmed that the Strait is open, that Iran is in the process of removing its mines... but that this is "not tied" to the truce in Lebanon, and the U.S. blockade on ships traveling to Iran remains in effect.
NYSE: COP
Key Data Points
What this means for ConocoPhillips stock
Confusing? Absolutely. Contradictory? Pretty much. But investors are reading the tea leaves today and concluding the conflict in Iran is nearing an end, and oil may soon resume flowing from the Persian Gulf.
That's good news for oil prices, but bad news for Conoco stock, which at 19 times earnings but only a 12% projected long-term growth rate, is suddenly looking a little pricey.
