01:52 PM EDT, 04/08/2026 (MT Newswires) -- Energy stocks were sharply lower Wednesday afternoon, with the NYSE Energy Sector Index falling 4.2% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 4.4%.

The Philadelphia Oil Service Sector Index was decreasing 0.3%, and the Dow Jones US Utilities Index rose 0.5%.

In sector news, oil prices fell after the US and Iran agreed to a two-week ceasefire. In a social media post on Tuesday, President Donald Trump said he agreed to suspend "the bombing and attack of Iran for a period of two weeks" based on conversations and requests from Pakistan's Prime Minister Shehbaz Sharif and Field Marshal Asim Munir. The suspension of hostilities is subject to Iran agreeing to the "complete, immediate, and safe opening" of the Strait of Hormuz, according to Trump.

Front-month West Texas Intermediate crude oil tumbled nearly 15% to $96.14 a barrel, and the global benchmark Brent crude contract slumped past 12% to $95.70 a barrel. Henry Hub natural gas futures fell 5.2% to $2.72 per 1 million BTU.

In corporate news, Exxon Mobil ( XOM ) expects its global oil-equivalent output to take a hit in Q1 on production disruptions caused by the Middle East conflict. Exxon shares fell past 5%.

Shell (SHEL) shares declined 2.9% after the company said it expects Q1 upstream production of 1.76 million to 1.86 million barrels of oil equivalent per day, compared with 1.89 million in Q4.

EON Resources ( EONR ) said Wednesday it fully hedged 75% of its net production through 2027 to capitalize on oil prices exceeding $110 per barrel due to the Iran war. EON Resources ( EONR ) shares dropped 5.8%.