Shares of Noble Corporation and Tidewater fell sharply after the U.S. and Iran signed an interim agreement waiving sanctions on Tehran's oil and reopening the Strait of Hormuz. WTI futures dropped as much as 3.5% to an intraday low of $73.60, while Brent crude fell 2% to $77.96, as the 14-point memorandum of understanding began a 60-day negotiation period and stripped away the geopolitical risk premium that had boosted energy stocks. Noble Corporation declined 4.4% and Tidewater dropped 6%, with Tidewater's move reflecting market concern over lower oil prices reducing demand for oilfield services. Tidewater remains up 21.8% year-to-date but trades 30.2% below its 52-week high of $91.12.
Noble Corporation plcUS-Iran deal removes geopolitical risk premium, causing oil price drop and Noble's stock decline.
Tidewater IncLower oil prices reduce demand for oilfield services, hurting Tidewater's business.