Shares of energy companies fell sharply amid hopes that the U.S. and Iran would get negotiations back on track.
President Trump opted not to escalate attacks on Iran, partly because of concerns about U.S. munition stockpiles. U.S.-traded oil futures fell by 7.2% to $82.87 a barrel, their largest retreat since May.
In a sign that Wall Street firms are still eager to invest in the Persian Gulf, Kuwait Petroleum and Kuwait Oil signed a $16 billion pipeline lease agreement with investors led by investment firms Blackstone, Brookfield and KKR. Shares of Baker Hughes surged after the oilfield services company said demand for its services allowed it to successfully navigate disruptions in the Middle East. U.S. oil majors are likely to echo Baker Hughes' good fortunes after a quarter thanks to elevated energy prices, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
