BATL, INDO Stocks Tumble Pre-Market As Natural Gas Futures Decline – Trump Extends Risk Insurance For Maritime Trade Through Strait Of Hormuz

President Donald Trump said that political risk insurance and financial security guarantees in the region would be provided by the United States Development Finance Corporation.

• Natural gas futures expiring in April were down nearly 2% at the time of writing.
• Aiding the cooldown in natural gas futures is a reported outreach by Iranian officials to discuss terms for ending the conflict.
• According to a report by The New York Times on Wednesday, officials from Iran’s Ministry of Intelligence reached out to the CIA a day after the attacks in the country.

Shares of Battalion Oil (BATL) and Indonesia Energy (INDO) tanked in Wednesday’s pre-market trade amid a decline in the price of natural gas futures following an announcement from President Donald Trump regarding securing maritime trade through the Strait of Hormuz.

Battalion Oil shares were down more than 28% at the time of writing, while Indonesia Energy shares declined 8%. This comes after a 578% surge in BATL stock over the past five trading sessions, and over 17% rise in INDO stock.

Trump Seeks To Safeguard Maritime Trade

Earlier on Tuesday, President Trump announced the extension of risk insurance for maritime trade, especially energy, through all shipping lines in the Middle East. The political risk insurance and financial security guarantees in the region would be provided by the United States Development Finance Corporation, the President added.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz as soon as possible. No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump stated in a post on Truth Social.

Natural gas futures expiring in April were down nearly 2% at the time of writing.

Aiding the cooldown in natural gas futures is a reported outreach by Iranian officials to discuss terms for ending the conflict. According to a report by The New York Times on Wednesday, officials from Iran’s Ministry of Intelligence reached out to the CIA a day after the attacks in the country.

Market Signaling That The Situation Is Not Alarming, Says Expert

Explaining the cool-off in the natural gas and crude oil prices, GasBuddy’s Head of Petroleum Analysis, Patrick De Haan, stated that the market is signaling that while the Iran war and the Strait of Hormuz situation are important to monitor, it is not alarming.

Analysts at ING Think stated in a recent note that the U.S. market is better insulated from the Middle East than other markets. “The US is basically exporting LNG at capacity, so it’s not going to lead to any additional tightness in the US balance,” the firm stated.

BATL stock is up 2,350% year-to-date, while INDO stock is up 79%.

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