What Happened?
A number of stocks fell in the afternoon session after crude oil edged lower on reports that the U.S. and Iran were nearing a draft peace resolution.
Adding to the weakness, Borr Drilling (BORR) dropped 16% after missing revenue expectations, leading the sector decline. The Iran conflict embedded roughly $15-20/barrel of "Hormuz risk" premium in crude since April.
Peace headlines unwind that premium instantly and energy equities, priced as leveraged plays on oil, fall faster than the underlying. Borr Drilling's miss compounded the damage at the high-beta end: offshore drillers carry the highest operational leverage to crude and the largest downside when sentiment shifts.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Infrastructure company Golar LNG (NASDAQ: GLNG) fell 4.5%. Is now the time to buy Golar LNG? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Talos Energy (NYSE: TALO) fell 3.1%. Is now the time to buy Talos Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Murphy Oil (NYSE: MUR) fell 3.5%. Is now the time to buy Murphy Oil? Access our full analysis report here, it’s free.
Zooming In On Golar LNG (GLNG)
Golar LNG’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 4.1% on the news that geopolitical tensions in the Middle East escalated, pushing crude oil prices sharply higher.
President Trump's televised remarks signaled that the U.S. conflict with Iran could continue for several more weeks, increasing investor nervousness. This uncertainty drove West Texas Intermediate and Brent crude prices up. With supply potentially constrained, markets expected that higher global oil prices would be reflected in stronger earnings for oil and gas companies.
Golar LNG is up 37.9% since the beginning of the year, and at $52.32 per share, it is trading close to its 52-week high of $57.36 from May 2026. Investors who bought $1,000 worth of Golar LNG’s shares 5 years ago would now be looking at an investment worth $4,411.
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