Shares of Valaris and Seadrill declined after the U.S. and Iran signed an interim agreement waiving sanctions on Iranian oil and reopening the Strait of Hormuz. WTI futures fell as much as 3.5% to an intraday low of $73.60, while Brent crude dropped 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. Valaris fell 6.4% and Seadrill fell 4.2%, reflecting the market's expectation that the return of Iranian barrels and normalized shipping through the strait—which handles roughly 20% of the world's seaborne oil and LNG—will reduce demand for oilfield services. The deal removes a supply disruption that had kept oil prices elevated since the Hormuz blockade began in late February, with Brent peaking at $126 during the conflict. Valaris remains up 49.6% year-to-date but is trading 31.2% below its 52-week high of $113.42 from May 2026.
Valaris LtdUS-Iran deal eases oil supply fears, reducing demand for oilfield services.
Seadrill Limited