EONR, TPET, INDO Drop As Iran Ceasefire Talks Emerge — But Analysts Warn Refinery Damage Could Keep Summer Oil Prices Elevated

• EON Resources declined 6%, Trio Petroleum (TPET) dropped roughly 3%, while Indonesia Energy (INDO) and the United States Oil Fund (USO) slipped 1 % in premarket trading.
• Brent crude was at $109.27 a barrel, while West Texas Intermediate traded around $107 after reports that the U.S, Iran, and mediators were in talks of a potential 45-day ceasefire that may lead to the end of the conflict. 
• Analysts said recent statements from Trump have lifted the risk premium across crude markets and intensified demand for immediately deliverable barrels

Major oil stocks and index funds dropped in premarket trading on Monday amid a reported plan for a 45-day ceasefire between the U.S and Iran, put together by Pakistan, effective immediately, and President Donald Trump's threats over the weekend for Iran to reopen the Strait of Hormuz.

Shares of EON Resources (EONR) declined 6%, Trio Petroleum (TPET) dropped roughly 3%, while Indonesia Energy (INDO) and the United States Oil Fund (USO) slipped 1 % in premarket trading.

Crude Slides Despite Ongoing Hormuz Disruptions

Brent crude was at $109.27 a barrel, while West Texas Intermediate traded around $107 after reports that the U.S, Iran, and mediators were in talks of a potential 45-day ceasefire that may lead to the end of the conflict.

Over the weekend, Trump threatened to destroy Iran’s power plants and bring “Hell” to the country starting Tuesday.

Summer To See Very Elevated Gas Prices

Patrick De Haan, head of petroleum analysis at GasBuddy, said on X that attacks on refining capacity are likely to take longer to restore than the Strait and risk higher fuel prices globally for longer. “Coupled with Ukraine attacks on Russian refineries, this summer could see very elevated prices compared to early-year expectations,” De Haan said.

Ole Hansen, head of commodity strategy at Saxo Bank, said in an April 3 post on X that “Recent statements from President Trump have shifted expectations toward a more prolonged disruption, with no clear timeline for reopening key shipping lanes. This has lifted the risk premium across crude markets and intensified demand for immediately deliverable barrels,”

“In a market where spot and prompt barrels trade at substantial premiums due to supply disruptions and logistical constraints, this difference in timing makes WTI appear temporarily more expensive,” Hansen said.

OPEC Push To Support Stability

On April 5, the eight Organization of the Petroleum Exporting Countries (OPEC)+ countries, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, decided to implement a production adjustment of 206 thousand barrels of oil per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023.

The adjustment will be implemented in May, and the 1.65 million barrels per day may be returned, in part or in full, on a gradual basis and subject to evolving market conditions.

The countries said, “Any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility.”

How Did Stocktwits Users React?

On Stocktwits, sentiment for ‘BATL’ was in ‘bullish’ territory, EONR was ‘extremely bearish’, while USO and TPET remained ‘bearish’.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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