Why ExxonMobil Stock Dropped on Friday
Key Points
Iran just opened the Strait of Hormuz -- and yet, it's also still pulling mines out of the Strait.
President Trump agrees the Strait is open, and investors seem to think so, too.
The question now is whether the oil tankers believe it.
- 10 stocks we like better than ExxonMobil ›
The Strait of Hormuz is open for business! That's good news for many investors, and the S&P 500 is up 1.2% as of 11:35 a.m. ET.
It's less good news for ExxonMobil (NYSE: XOM) stock, however. Shares of the oil giant fell 5.3% through 11:35 a.m. ET, as investors began pricing in the prospect of lower oil prices.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Oil just got cheaper
Oil prices tumbled today, with WTI crude oil down 13% and Brent crude, the international benchmark, falling nearly 12%. Brent is now below $88, and WTI is at $82 a barrel. That's not cheap -- at the start of the year, you could buy a barrel of Brent for $60. But it's much cheap-er than a couple weeks ago, when Brent was approaching $110!
Thank (or blame) both President Trump and Iran for this.
This morning, Iranian Foreign Minister Seyed Abbas Araghchi announced the Strait of Hormuz is open to "all commercial vessels" for the duration of Israel's ceasefire with Lebanon.
In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.
-- Seyed Abbas Araghchi (@araghchi) April 17, 2026
President Trump confirmed on Truth Social that the Strait is open, that Iran is removing its mines from the Strait -- but denied this is "tied" to an Israel-Lebanon truce, and reminded that the U.S. blockade on Iranian ships remains in effect.
What this means for Exxon stock
Confusing? Absolutely. Contradictory? Yes. That, too. But investors seem hopeful the conflict in Iran is nearing its conclusion, and oil may soon resume flowing from the Persian Gulf.
That's good news for most investors, but bad news for oil prices and for Exxon stock. At more than 22 times earnings and with one of the slowest projected growth rates for oil majors -- 11% -- Exxon stock looks suddenly expensive.
Should you buy stock in ExxonMobil right now?
Before you buy stock in ExxonMobil, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $581,304!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,215,992!*
Now, it’s worth noting Stock Advisor’s total average return is 1,016% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 17, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
