TechnipFMC PLC

Shares of oilfield-services companies TechnipFMC and Valaris fell sharply as crude oil dropped to its lowest level since the start of the Iran conflict, with tankers resuming transit through the Strait of Hormuz and the U.S. and Iran signaling progress toward ending hostilities. TechnipFMC declined 3.1% and Valaris fell 3.7% in the afternoon session, while the S&P 500 energy index lost about 2.45%. WTI crude slid roughly 4% to near $70 and Brent dropped about 4% to near $74, the lowest since February 27, the day before U.S.–Israeli strikes on Iran, leaving crude down roughly 40% from its wartime peak. The selloff was driven by tankers openly crossing Hormuz with transponders on, safety guarantees cited by the International Maritime Organization, and the International Energy Agency estimating UAE exports near 85% of pre-war levels. Valaris, which has had 25 moves greater than 5% over the past year, remains up 44.1% year-to-date but trades 33.7% below its 52-week high of $113.42 from May 2026.

Oilfield services stocks reported a strong first quarter, with aggregate revenues beating analyst consensus estimates by 3.8%, though share prices have since fallen an average of 10.3%. TechnipFMC posted revenue of $2.49 billion, up 11.6% year on year but missing expectations by 1%, and its stock dropped 15.4% to $65.12. Select Water Solutions was the best performer, with revenue of $366 million exceeding estimates by 6.8%, while Borr Drilling was the weakest, missing revenue estimates by 2.1% and seeing its stock plunge 31.4% to $4.24. Other notable results included Atlas Energy Solutions beating revenue estimates by 3.5% and TETRA Technologies beating by 3.4%.

Shares of TechnipFMC, Chord Energy, and Crescent Energy fell sharply after the U.S. and Iran signed an interim agreement waiving sanctions on Tehran's oil and reopening the Strait of Hormuz. WTI futures dropped as much as 3.5% to an intraday low of $73.60, while Brent crude fell 2% to $77.96, as the 14-point memorandum of understanding began a 60-day negotiation period and stripped away the geopolitical risk premium that had boosted energy stocks. Under the deal, Iran will allow toll-free passage through the Strait of Hormuz immediately, with full traffic capacity restored within 30 days, normalizing a chokepoint that handles roughly 20% of the world's seaborne oil and LNG. Oilfield services company TechnipFMC fell 3.9%, U.S. shale producer Chord Energy dropped 3.6%, and Crescent Energy declined 4.3%, with the latter's shares remaining extremely volatile and now trading 25.9% below their 52-week high of $13.92 from May 2026. The potential return of Iranian exports, which ran at roughly 3 million barrels per day before the conflict, represents a persistent supply overhang that would most directly impact U.S. shale producers who gained market share during Iran's absence.