The Woodside Energy Group Ltd (ASX: WDS) share price is taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $34.79. In late morning trade on Tuesday, shares are changing hands for $33.77 each, down 2.9%.
For some context, the ASX 200 is up 1% at this same time.
But it's not just the Woodside share price that's underperforming today.
Here's how these other top ASX 200 energy stocks are tracking this morning:
- Santos Ltd (ASX: STO) shares are down 2.7% at $7.83 each
- Beach Energy Ltd (ASX: BPT) shares are down 1.6% at $1.27 each
- Karoon Energy Ltd (ASX: KAR) shares are down 3.4% at $1.99 each
So, what's going on?
Image source: Getty Images
Why is the Woodside share price tumbling?
The ASX 200 is rallying, and the Woodside share price is falling, after United States President Donald Trump dialled back the pressure on Iran overnight.
As you're likely aware, Trump is intent on reopening the critical Strait of Hormuz shipping route. Iran's virtual closure of the strait, which accounts for about 20% of the world's oil shipping traffic, has sent energy prices soaring in March.
After initially giving Iran 48 hours to fully reopen Hormuz or face the bombing of its power stations, Trump delayed that option by five days. The US president said that Iranian officials are wanting to make a deal, news that Iran has so far denied.
Nonetheless, global oil prices plunged overnight on hopes of a possible resolution to the conflict. And that's clearly feeding through to the selling pressure on the Woodside share price today.
Brent crude is currently trading for US$99.94 per barrel. That's down 10.9% in 24 hours, and down from a peak of almost US$120 per barrel last week, according to data from Bloomberg.
Should the oil price indeed "fall like a rock" upon the successful reopening of the Strait of Hormuz, as Trump indicated, ASX energy shares could come back to earth following their remarkable recent rally.
But plunging oil prices could see a significant rally in many ASX 200 stocks. That includes energy-intensive companies like Qantas Airways Ltd (ASX: QAN). Indeed, shares in the flying kangaroo are up 4.3% today, trading for $8.50 apiece.
How have ASX 200 energy shares tracked in March?
Monday, 2 March, marked the first day of trading on the ASX since the start of the Iran war.
Since market close on 2 March, the ASX 200 has dropped a sharp 8.2%.
Here's how these ASX 200 energy shares have performed over that same time (including today's intraday retrace):
- Woodside shares are up 12.0%
- Santos shares are up 7.7%
- Karoon Energy shares are up 10.5%
- Beach Energy shares are up 10.3%
Stay tuned!
