European energy shares declined sharply on Wednesday as oil prices plunged after the United States and Iran agreed to a conditional ceasefire, easing a conflict that has lasted more than five weeks and resulted in more than 5,000 deaths across nearly a dozen countries, including over 1,600 civilians in Iran.
Shares of Shell plc (LSE:SHEL) fell by more than 6%, while BP (LSE:BP.) dropped about 8%. TotalEnergies (EU:TTE) declined roughly 5.4%, and Eni (BIT:ENI) slid 7.2% by 07:22 GMT. Elsewhere, Galp Energia (EU:GALP) and Repsol (BIT:1REP) were also lower, falling around 6.2% and 8% respectively, while Maurel & Prom (EU:MAU) dropped as much as 18.7%.
The sell-off followed a sharp drop in crude prices. Brent crude fell around 13% to $94.80 per barrel—its lowest level since March 25—after hitting an intraday low of $91.70. U.S. benchmark WTI dropped nearly 15% to $96.21.
Broader equity markets, however, moved higher. The FTSE 100 climbed 2.7%, Germany’s DAX gained nearly 5%, France’s CAC 40 rose 3.4%, and Europe’s Stoxx 600 advanced 3.6%.
U.S. markets also pointed upward, with S&P 500 futures rising 2.6% to 6,828.50. Asian equities closed the session higher as well, with Japan’s Nikkei advancing 5.4%, while China’s CSI300 and Hong Kong’s Hang Seng rose 3.4% and 3.1% respectively.
The easing of tensions came after U.S. President Donald Trump announced late Tuesday that he had agreed to pause planned attacks on Iranian infrastructure for two weeks.
The move was “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” he wrote on Truth Social.
Iranian Foreign Minister Abbas Araghchi said on behalf of the country’s Supreme National Security Council that Tehran’s armed forces will “cease their defensive operations.”
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