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 11:35 a.m. ET.
It's less good news for ExxonMobil (XOM 0.35%) stock, however. Shares of the oil giant fell 5.3% through 11:35 a.m. ET, as investors began pricing in the prospect of lower oil prices.
Image source: Getty Images.
Oil just got cheaper
Oil prices tumbled today, with WTI crude oil down 13% and Brent crude, the international benchmark, falling nearly 12%. Brent is now below $88, and WTI is at $82 a barrel. That's not cheap -- at the start of the year, you could buy a barrel of Brent for $60. But it's much cheap-er than a couple weeks ago, when Brent was approaching $110!
Thank (or blame) both President Trump and Iran for this.
This morning, Iranian Foreign Minister Seyed Abbas Araghchi announced the Strait of Hormuz is 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
President Trump confirmed on Truth Social that the Strait is open, that Iran is removing its mines from the Strait -- but denied this is "tied" to an Israel-Lebanon truce, and reminded that the U.S. blockade on Iranian ships remains in effect.
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What this means for Exxon stock
Confusing? Absolutely. Contradictory? Yes. That, too. But investors seem hopeful the conflict in Iran is nearing its conclusion, and oil may soon resume flowing from the Persian Gulf.
That's good news for most investors, but bad news for oil prices and for Exxon stock. At more than 22 times earnings and with one of the slowest projected growth rates for oil majors -- 11% -- Exxon stock looks suddenly expensive.
