Here's Why Chevron Stock Dipped Lower Today

Key Points
Chevron shares dropped as oil prices fell below $100.
The Strait of Hormuz remains closed, and Chevron may benefit from higher oil prices and crack spreads.
- 10 stocks we like better than Chevron ›
Shares in integrated major energy company Chevron (NYSE: CVX) declined by 4.6% to 11:30 a.m. The stock fell as the price of oil dipped by a couple of percentage points to below $100 a barrel. That was enough to encourage selling from investors buying into stocks like Chevron and other highly liquid energy stocks as a way to play rising energy prices.
Are investors overreacting?
The move downward in oil is likely a reaction to President Trump's allusion to a conclusion to U.S. attacks on Iran in the next couple of weeks. But here's the thing. The Strait of Hormuz is still almost entirely closed to commercial energy traffic; it's not clear how long it will take to repair the damage to energy infrastructure in the region, and there's no guarantee Iran will reopen the Strait under normalized conditions even if the U.S. stops attacking Iran.
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 »
In short, there are many imponderables here, but what we know with certainty is that the Strait remains almost entirely closed, and until energy traffic through it is normalized, then there will be challenges in the world replacing the energy (34% of global crude oil trade and 20% of global liquefied natural gas, or LNG, trade ) previously flowing through it. We also know that Chevron is one of the 10 great stocks to buy as long as the Strait remains closed.
In other words, until the Strait is reopened, investors can expect a higher-for-longer oil price.
What it means to Chevron
As an integrated energy major, Chevron not only benefits from a higher price of oil, but also from an increased crack spread (the difference between the price of refined petroleum products and a barrel of crude oil), and in the current environment (where neither crude nor refined products are passing through the Strait) it's a favorable position to be in. Consequently, investing in Chevron remains a great way to protect against ongoing turmoil in the Persian Gulf.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, 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 Chevron 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 $518,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,069,165!*
Now, it’s worth noting Stock Advisor’s total average return is 915% — a market-crushing outperformance compared to 183% 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.
*Stock Advisor returns as of April 1, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.