CIR Afternoon Update — April 8, 2026
Crude markets experienced one of their most volatile sessions in years on Wednesday as a U.S.-Iran ceasefire deal briefly triggered a historic price collapse, only for fresh geopolitical shocks to temper the relief rally.
WTI Plunges as Hormuz Reopens
According to OilPrice.com citing Reuters and Morningstar data, WTI crude for May delivery plunged 17.9% to $92.62/bbl on Wednesday morning — one of the largest single-day oil price drops on record — after the United States and Iran agreed to a two-week ceasefire deal that includes the reopening of the Strait of Hormuz. Brent crude for June delivery fell 16.4% to $91.37/bbl. Two vessels — a Greek-owned bulk carrier and a Liberia-flagged ship — were confirmed to have transited the Strait by mid-morning, per AFP citing MarineTraffic.
Saudi Pipeline Struck Hours After Ceasefire
According to OilPrice.com citing Reuters, Iran's IRGC struck a pumping station on Saudi Arabia's 1,200-km East-West Pipeline on Wednesday morning — just hours after the ceasefire announcement. The pipeline had been serving as Saudi Arabia's primary crude export outlet at emergency capacity of 7 million bpd since Hormuz closures began in late February, with approximately 5 million bpd flowing through the Red Sea port of Yanbu. The attack and reports of additional strikes on American-operated facilities in Yanbu are expected to temper ceasefire optimism and could partially reverse WTI's intraday losses.
ExxonMobil Flags $2.9B Upstream Earnings Bump
According to OilPrice.com citing Reuters, ExxonMobil signaled Q1 2026 upstream earnings could be $2.1–$2.9 billion above Q4 2025 levels due to elevated oil and gas prices during the conflict period. The company estimates war-related disruptions reduced oil-equivalent production by approximately 6% versus Q4 2025. Full Q1 results are expected May 1, 2026.
Equity Markets Diverge Sharply
According to OilPrice.com, major oil equities sold off sharply on the Hormuz news: ExxonMobil (XOM) fell 6.1%, Chevron (CVX) dropped 5.3%, and Marathon Petroleum (MRO) declined 5.8% in pre-market trading. Meanwhile, airlines surged on expected fuel cost relief, with Delta (DAL) up 12.9% and United (UAL) gaining 12.7%.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. CIR does not hold positions in any securities mentioned. Data sourced from OilPrice.com, Reuters, AFP, and MarineTraffic. Market conditions are rapidly evolving — verify all data independently before acting.
