- BATL dropped nearly 6% after weaker production and revenue, partly tied to gas-treating facility curtailments, while USO fell about 4% and EONR declined 3%.
- The U.S. deployed 2,000 troops from the 82nd Airborne Division even as diplomacy advanced and Hormuz disruptions persisted.
- Iran signaled “non-hostile” vessels could still transit Hormuz, while missile strikes on Israel kept geopolitical risks elevated.
Major oil stocks and index funds slipped in premarket trading on Wednesday after Washington advanced a new diplomatic proposal to end the Iran conflict, offsetting fresh troop deployments and ongoing disruption through the Strait of Hormuz.
Battalion Oil (BATL) fell nearly 10% in premarket trading, partly due to its recent weaker production and revenue, tied partly to temporary gas-treating facility curtailments. Meanwhile, the United States Oil Fund (USO) dropped about 5%, EON Resources (EONR) declined 4%, and Trio Petroleum (TPET) slipped over 6%.
Brent crude fell as much as 7% toward $97 per barrel before trimming losses, while West Texas Intermediate traded near $89 after reports that the U.S. drafted a 15-point proposal aimed at ending the conflict with Iran. The proposal was reportedly delivered through Pakistan.
Hormuz Tensions Persist Despite Talks
The diplomatic push came even as the Trump administration deployed about 2,000 troops from the 82nd Airborne Division while weighing options to ease Iran’s hold over the Strait of Hormuz. Oil later pared losses after Tehran launched fresh missile strikes on Israel and said prices would not return to earlier levels until threats against the country were removed.
Trump’s stance has shifted rapidly in recent days, first threatening strikes if the strait was not reopened within 48 hours before extending the timeline by five days to allow talks. He also said Iran had offered a “present” tied to energy flows through the strait, while the White House pointed to a “newfound possibility of diplomacy” even as military operations continued.
Iran told the International Maritime Organization that “non-hostile” vessels could still transit the waterway under its rules, even as Israel continued strikes across Tehran and China urged Iran to engage in negotiations with the United States “as soon as possible.”
Analysts Say War Premium Still Ebbing And Flowing
Ole Hansen, head of commodity strategy at Saxo Bank, said on X that the war risk premium “continues to ebb and flow,” but warned underlying tightness across commodities is increasing as earlier tanker shipments complete deliveries.
Erste Group said the broader economic shock from the conflict could last longer than initially expected but remain manageable if shipping through Hormuz resumes soon, adding they expect transit through the strait to normalize “in the coming weeks.”
On the other hand, Saxo Bank said markets may stabilize even before the conflict formally ends. “Wars rarely need to end before markets bottom,” the bank said. “Investors tend to move as soon as the probability of further escalation starts to fall.”
Macquarie said expectations of a near-term ceasefire may be premature, noting the demands of both sides “seem unbridgeable” and prediction markets suggest a ceasefire may not come before late April.
How Did Stocktwits Users React?
On Stocktwits, sentiment for USO, TPET, BATL and EONR remained ‘bearish’, with message volume ‘high’ for USO, ‘extremely low’ for TPET and BATL, and ‘normal’ for EONR.
Over the past year, BATL has surged over 600%, EONR has gained 74% and USO has risen 53%, while TPET has declined 37%.
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