Brent crude fell $12.66 to settle at $97.21 a barrel. The price drop followed China's call for a comprehensive ceasefire in the U.S.-Iran conflict. This reversal erased gains triggered by earlier disruptions in the Strait of Hormuz.
Falling oil prices triggered a sell-off in major energy stocks. Exxon Mobil and Chevron shares both declined by nearly 5%. These companies represent top holdings in the Vanguard Energy ETF (VDE). Investors reacted to the potential for de-escalation and stabilized global oil supplies.