VDE is trading 3% down today as oil prices plunge below $100 per barrel following reports of a U.S.-Iran agreement to reopen the Strait of Hormuz.
- The deal to gradually reopen the critical shipping lane has significantly eased global supply fears, putting heavy pressure on energy sector stocks.
- This move extends a downward trend for the ETF, which saw a 4% decline in the previous session.
- While broader markets remain mixed, the energy sector is underperforming as geopolitical de-escalation reduces the risk premium on crude.