# Oil prices suffer biggest monthly drop in six years on Iran deal hopes — short energy stocks

_AI-generated trading idea · SHORT · XLE_

> Canonical page: https://commonquant.ai/research/for-you/oil-prices-suffer-biggest-monthly-drop-in-six-years-on-iran--0e08552c-70b6-4d63-b5ba-69e14fa67f9e

Oil prices are tumbling as President Trump signals a final decision on a U.S.-Iran deal is imminent, which could end the conflict and bring more oil supply back to the global market.

## Idea

The prospect of a U.S.-Iran ceasefire is easing fears about global energy shortages, particularly around the Strait of Hormuz. With oil posting its worst month in six years, a formal peace deal could drive crude prices down even further as supply fears evaporate. Because energy company profits are tightly linked to the price of oil, a continued drop in crude makes the overall energy sector highly vulnerable to more losses.

## Key details

- Symbols: XLE
- Timeframes: 1D
- Tags: \#energy, \#macro, \#mean\_reversion

## Community

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## News sources

- [Brent oil price posts biggest monthly loss in six years as market counts on a U.S.-Iran deal](https://www.cnbc.com/2026/05/29/oil-price-iran-deal-war-ceasefire-trump.html) — CNBC

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