Stars, Stripes, and the Fine Print

Research evidence excerpt

Stars, Stripes, and the Fine Print

Energy | Global Energy

May 26, 2026

Stephen Richardson Stars, Stripes, and the Fine Print

212-446-5639 Wherein we explain why the interim end of the Iran conflict and

stephen.richardson@evercoreisi.com reopening of Hormuz is ultimately constructive for Energy stocks.

Chris Baker, CFA We find ourselves nostalgic for the days when major geopolitical

917-741-8669

developments were sorted out during market hours. Crude was open chris.baker@evercoreisi.com

on a holiday Monday while US equities were not and sold off on cue as

Chai Zhao, CFA

details of a peace deal trickled out from both sides. The move was 646-321-3097

chai.zhao@evercoreisi.com understandable. A prolonged closure of the strait was always treated

Jason Bandel as an extreme tail event, and the market never fully priced the

212-653-9044 consequences of sustained disruption. The oil market also proved more

jason.bandel@evercoreisi.com resilient than we anticipated, with inventories, SPR releases, and

Chris Lee logistical workarounds doing the heavy lifting. Still, the barrels x days

212-653-9041 math is not debatable, and it was only a matter of time before

chris.lee@evercoreisi.com commercial buyers needed to return to the physical market. From here,

the market will trust but verify, watching whether physical flows follow

the anticipatory price action. The bigger point is that de-escalation

Table of Contents should be good for Energy equities, not bad. A narrower risk premium,

▪ Feature: Wet Hot Delaware Summer better visibility on the inventory hole, and a clearer path toward normal

▪ Estimates Updates: DVN, GPOR & GRNT flows should allow investors to evaluate the sector on fundamentals

rather than crisis math. The conflict was a high-cost object lesson in the