Why ConocoPhillips Stock Dropped Today

ConocoPhillips shares slipped only about 2% even as oil prices fell sharply, with Brent down 3% and WTI down 3.5% intraday, because traders were reassessing supply risks from the Strait of Hormuz. U.S. Energy Secretary Chris Wright said oil shipments through the strait are rising meaningfully, and a JPMorgan report suggested traffic could be near 2 million barrels per day. The market interpreted that as evidence global supply may be less constrained than previously thought, pressuring crude prices and raising questions about the durability of oil producers’ profits. However, the article argues the selloff may be premature given ongoing Israel-Iran tensions, U.S.-Iran naval friction, and existing damage to Gulf oil infrastructure that could keep prices elevated longer term.