Oil crashing 20% as Iran peace deal nears — bet against energy stocks while the slide continues
Oil prices have fallen 20% from their 2026 highs after President Trump said the U.S. is close to a peace deal with Iran that could reopen the Strait of Hormuz — a critical oil shipping route blocked since the war began in February.
Idea
The Strait of Hormuz blockade was the single biggest reason oil prices spiked earlier this year. If a peace deal reopens it, a flood of oil supply will hit the market very quickly. Trump's own comments suggest a deal is imminent, and oil has already dropped 20% on the expectation alone — but there's likely further to fall if the deal actually materializes. Energy companies' profits are tightly linked to oil prices, so their stocks should keep sliding as crude falls. The trend is clearly down and peace headlines keep coming.