EON Resources Inc. ( EONR ) shares plummeted by more than 18.6% as the Tuesday trading session began.

The stock is trading lower despite a significant rally in crude oil prices. WTI crude futures neared $97 per barrel, while Brent crude climbed above $104, according to data from Trading Economics.

Prices rose over 3% as uncertainty grows over an international coalition to protect shipping through the Strait of Hormuz.

EONR's Relative Strength Index (RSI) stands at 65, signaling the stock is approaching overbought territory following its sharp 248% year-to-date rally.

Geopolitical Tensions and Market Sentiment

Market volatility spiked after Germany, Spain, and Italy rejected calls to deploy naval forces to the Strait of Hormuz. These nations cited a lack of authorization from the United Nations and NATO.

While oil prices spiked due to the blockage, LPL Research Chief Economist Jeffrey Roach noted the U.S. is “much less reliant on foreign energy than it once was.”

Strategic Hedging Through 2027

To combat price volatility, EONR on March. 11 expanded its oil hedging position. The company aims to protect cash flow through 2027.

“We are taking action now to ensure profitable pricing through 2027 before an anticipated retreat to lower oil prices,” said Dante Caravaggio, President and CEO of EON Resources ( EONR ).

Upcoming Earnings and Financial Estimates

Investors are also weighing upcoming financial results. EONR is scheduled to report its fourth-quarter earnings on April 14. Analysts expect a loss per share of 4 cents on revenue of $7.30 million.

In the previous third quarter, the company reported an earnings per share of 10 cents. This beat the estimated loss of 8 cents. However, revenue of $4.36 million missed the $5.40 million analyst target.

Price Action: As of Tuesday, EONR was trading at $1.10, down 18.66%, according to data from Benzinga Pro.

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