What Happened?
A number of stocks fell in the afternoon session after crude oil prices pulled back from the previous day's rally. West Texas Intermediate (WTI) crude fell 2.2% to settle near $71.88 per barrel, while the international benchmark Brent crude slipped below $77 per barrel.
The pullback occurred despite the U.S. military confirming secondary strikes on Iran and President Trump declaring the recent ceasefire "over." Instead of pricing in further escalation, investors took profits as satellite vessel tracking data indicated that tanker traffic through the Strait of Hormuz was quietly continuing despite the geopolitical rhetoric.
The session confirmed that the energy sector's valuation was being dictated almost entirely by the geopolitical risk premium in the Middle East, rather than underlying supply and demand fundamentals.
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:
- Oilfield Services company Core Laboratories (NYSE: CLB) fell 2.3%. Is now the time to buy Core Laboratories? Access our full analysis report here, it’s free.
- Infrastructure company Excelerate Energy (NYSE: EE) fell 2.9%. Is now the time to buy Excelerate Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Black Stone Minerals (NYSE: BSM) fell 3.1%. Is now the time to buy Black Stone Minerals? Access our full analysis report here, it’s free.
Zooming In On Black Stone Minerals (BSM)
Black Stone Minerals’s shares are not very volatile and have had no 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.
Black Stone Minerals is up 2.4% since the beginning of the year, but at $13.84 per share, it is still trading 10.4% below its 52-week high of $15.44 from March 2026. Investors who bought $1,000 worth of Black Stone Minerals’s shares 5 years ago would now be looking at an investment worth $1,308.
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