01:19 PM EDT, 05/06/2026 (MT Newswires) -- Energy stocks were lower Wednesday afternoon, with the NYSE Energy Sector Index falling 3.6% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 4.1%.

The Philadelphia Oil Service Sector Index was shedding 1.6%, and the Dow Jones US Utilities Index was down 1.2%.

In sector news, the White House is of the view that an agreement with Tehran -- a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations -- is close, Axios reported, citing two US officials and two other sources briefed on the issue. Washington's MoU, if Iran accepts it, will lead to a gradual reopening of the Strait of Hormuz and lifting of the American blockade on Iranian ports, a person familiar with the matter told Bloomberg.

Front-month West Texas Intermediate crude oil sank 6.2% to $95.96 a barrel, and the global benchmark Brent crude contract slumped 6.8% to $102.45 a barrel. Henry Hub natural gas futures shed 2.1% to $2.73 per 1 million BTU.

In corporate news, Equinor ( EQNR ) shares fell past 8% after the firm reported Q1 revenue that decreased year on year and missed analysts' estimates.