03:36 PM EDT, 07/27/2026 (MT Newswires) -- Energy stocks were lower late Monday afternoon, with the NYSE Energy Sector Index falling 2.2% and the State Street Energy Select Sector SPDR ETF (XLE) down 1.7%.

The Philadelphia Oil Service Sector Index was shedding 1.7%, and the Dow Jones US Utilities Index fell 1.2%.

Oil prices fell after President Donald Trump said the US and Iran were in "very deep talks," fueling optimism about the prospects of de-escalation between the two nations, though Trump also said military action could resume if diplomacy fails, according to Axios.

Front-month West Texas Intermediate crude oil fell 8% to $82.14 a barrel, and the global benchmark Brent crude contract dropped 9.1% to $88.00 a barrel. Henry Hub natural gas futures shed 4.1% to $2.75 per 1 million BTU.

In corporate news, Expand Energy ( EXE ) has agreed to buy private asset-backed natural gas and power marketer Twin Eagle from Five Point Infrastructure for about $1.25 billion, becoming North America's leading gas marketer. Expand Energy ( EXE ) shares were down 1.1%.

Ameren ( AEE ) unit Ameren Missouri said Monday it plans to build the West Alton Energy Center, a 2,100-megawatt combined-cycle natural gas power plant designed to provide baseload electricity, support economic growth and strengthen grid reliability. Ameren ( AEE ) shares were shedding 1.4%.

TotalEnergies (TTE) has decided to appeal a June 25 ruling by the Paris Judicial Court in a climate-related duty-of-vigilance case, the company said. TotalEnergies shares were down 2.8%.

Baker Hughes ( BKR ) shares jumped past 5% after it posted Q2 adjusted earnings and revenue that topped analysts' expectations.

Chevron ( CVX ) Chief Executive Mike Wirth met with senior US government officials to discuss measures to keep the company's Kazakhstan operations safe from becoming collateral damage in the Ukraine-Russia war, The Wall Street Journal reported Friday. Chevron ( CVX ) shares were down 2%.