TotalEnergies (EU:TTE) shares declined 1.1% on Monday after crude oil prices fell sharply following comments from U.S. President Donald Trump suggesting diplomatic talks with Iran were set to begin.
Speaking to reporters aboard Air Force One, Trump said the United States was engaging with Iran “in the form of negotiations… it starts tomorrow afternoon and we’ll see if it’s true.” He also stated that an agreement concerning the Strait of Hormuz was “imminent.”
Energy Sector Weakens Alongside Crude Prices
The decline in oil prices weighed on energy stocks across Europe, with peers including BP (LSE:BP.) and Shell (LSE:SHEL) also trading lower during the session.
Although U.S. equity markets remained in positive territory, with the S&P 500 gaining 0.4%, the Dow Jones rising 0.6% and the Nasdaq advancing 0.5%, the stronger sentiment in broader markets failed to offset selling pressure across the European energy sector.
Commodity Exposure Keeps Pressure on TotalEnergies
As one of the largest constituents of both the CAC 40 and the Euro Stoxx 50, TotalEnergies remains highly sensitive to movements in global crude oil prices. The fall in energy markets overshadowed any optimism surrounding the prospect of renewed diplomatic engagement between Washington and Tehran.
The weaker commodity backdrop reinforced investor caution towards integrated oil producers despite the broader improvement in market sentiment.
Analysts Remain Cautious
Monday’s decline also reflected several company-specific considerations. Investors continue to assess TotalEnergies’ capital allocation strategy following Shell’s acquisition of renewable energy assets, while recent downward revisions to earnings forecasts have contributed to a more cautious market outlook.
As a result, the shares traded within a daily range of €74.34 to €75.60, remaining well below their 52-week high of €81.34.
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