US and Iran Reach Peace Agreement to End War
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 15 2026
0mins
Source: NASDAQ.COM
- Oil Price Plunge: Following the peace agreement between the US and Iran, Brent crude futures fell 5.6% and WTI dropped 5.9% on Monday morning, indicating that the market anticipates a rebalancing of supply and demand, which could lead to declining future profits.
- Oil Stocks Reaction: Chevron Corp (NYSE: CVX) saw its stock drop 3.1%, while Conoco's decline was only about half of Brent's drop, reflecting a cautious market sentiment regarding the oil sector's outlook amidst fluctuating prices.
- Unclear Peace Agreement Details: Although President Trump announced the peace deal and Iran confirmed an immediate ceasefire, the specifics remain ambiguous, such as the handling of Iran's uranium stockpiles and potential US reparations, leaving the market uncertain about the conflict's true resolution.
- Investor Caution: With concerns over the anticipated resumption of oil supply, investors are selling off shares, and despite Chevron not being included in analysts' top stock picks, its price volatility may still significantly influence overall market sentiment.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 172.240
Low
158.00
Averages
176.95
High
206.00
Current: 172.240
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Humanitarian Aid Commitment: Chevron has announced a $1 million donation to support immediate relief efforts following the devastating earthquakes in Venezuela, aimed at providing urgent assistance such as shelter, food, water, and medical support through trusted nonprofit organizations.
- Community Support Statement: Laura Lane, Chevron's Chief Corporate Affairs Officer, emphasized the company's solidarity with employees and affected communities, highlighting Chevron's long-standing commitment to Venezuela during this challenging time.
- Employee Safety Confirmation: The company has confirmed that all employees are accounted for and that its facilities are secure and operational, indicating Chevron's ability to maintain service continuity while supporting recovery efforts.
- Operational Resilience: Chevron is collaborating with local partners and relief organizations to ensure safe and reliable operations while contributing to humanitarian efforts, demonstrating the company's resilience and sense of responsibility in times of crisis.
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- Data Center Partnership: Chevron's agreement with Microsoft to power a west Texas data center for 20 years highlights the company's potential to meet the electricity demands of Big Tech amid rising AI needs.
- Energy Project Expansion: Chevron is exploring additional data center projects in the Permian Basin and other regions like the Midwest and Gulf Coast, leveraging its extensive natural gas resources to address surging electricity demand.
- Hydrogen Facility Development: With hydrogen facilities established in Colorado's Rocky Mountains and Utah, Chevron demonstrates its strategic positioning in renewable energy, aiming to diversify its energy supply portfolio.
- Revenue Potential Assessment: While analysts remain uncertain about whether powering data centers will become a significant revenue stream for Chevron, company executives express intent to pursue projects that meet their return thresholds.
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- Price Volatility: Despite Iran's restrictions on traffic through the Strait of Hormuz, WTI prices fell about 4%, dipping below $70 per barrel, indicating market concerns about future oil prices that could impact investor confidence.
- Cash Flow Expectations: ConocoPhillips anticipates generating an additional $1 billion in free cash flow in 2023 at $70 oil, primarily driven by capital and cost-saving initiatives, which will support future dividends and share repurchases.
- Chevron's Growth Potential: Chevron expects to boost its free cash flow by $12.5 billion at $70 oil and plans to achieve over 10% annual growth through capital projects, demonstrating resilience and long-term investment value in the current market environment.
- Market Uncertainty: Although oil prices are below $70, both ConocoPhillips and Chevron are still viewed as good long-term investments due to their expected strong cash flow growth over the next decade, despite potential short-term volatility from the chaotic situation in the Strait of Hormuz.
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- Oil Price Decline: WTI crude oil prices fell about 4% on Friday afternoon, dropping below $70 per barrel, despite Iran's attack on a cargo ship in the Strait of Hormuz, indicating market uncertainty and volatility.
- Strait of Hormuz Tensions: Although the U.S. and Iran signed a Memorandum of Understanding to reopen the Strait of Hormuz toll-free for 60 days, Iran has ordered at least three oil tankers to turn back, increasing risks to this critical global trade route.
- Company Cash Flow Performance: ConocoPhillips generated $19.9 billion in cash flow from operations last year, sufficient to cover its $12.6 billion capital budget with $7.3 billion left over for dividends and share repurchases, demonstrating strong financial performance in a low oil price environment.
- Long-Term Investment Appeal: Despite WTI dipping below $70, both ConocoPhillips and Chevron expect to generate significant free cash flow at this price point, indicating they remain attractive long-term investment options as they continue to grow through the end of the decade.
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- Software Sector Strength: Despite a broader tech sector decline, the iShares Expanded Tech-Software Sector ETF (IGV) rose by 3%, with Microsoft and Salesforce both gaining over 4%, indicating strong market confidence in software companies that may drive future investment inflows.
- Moderna's Strategic Shift: Moderna's stock surged 11% after detailing its long-term strategy at its annual Science Day, expanding beyond vaccines to include mRNA-based oncology and rare disease treatments, showcasing its potential for growth in the biotech sector.
- Healthcare Sector Rally: The S&P 500 healthcare sector outperformed, rising over 2%, with Veeva Systems and Eli Lilly both up 7%, reflecting increased investor confidence in the healthcare industry and signaling potential growth opportunities ahead.
- ON Semiconductor's Acquisition: ON Semiconductor announced a nearly $7 billion all-stock deal to acquire Synaptics, resulting in a 23% stock drop, yet it is expected to increase the company's total addressable market by $30 billion, highlighting its strategic expansion intentions in the semiconductor industry.
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- Project Launch: Chevron has signed an agreement with Microsoft to develop a natural gas-fired power facility named Kilby, which will have a capacity of 2.67 gigawatts, dedicated to powering Microsoft's data center in Pecos, Texas, marking a new venture for the company in energy project development.
- Market Potential: Chevron is looking for additional data center power deals in regions such as Texas, the Midwest, and the Gulf Coast, leveraging its advantages in the Permian Basin, which is rich in natural gas resources, to meet the high electricity demand from Big Tech companies.
- Revenue Diversification: The Kilby project provides Chevron with a separate revenue stream that is less exposed to commodity price fluctuations of its core business, although analysts suggest it is still too early to determine if this will become a significant revenue source.
- Future Outlook: Chevron expects to make a final investment decision by the end of the year, with the first power from Kilby anticipated in 2028, and project design details are being finalized, with potential for future capacity expansion.
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