Viva Energy Shares Tumble 6.6% as Oil Plunges on US-Iran Peace Hopes, Hitting Fuel Refiners Ampol and Viva

SYDNEY — Shares of Viva Energy Group fell more than 6% on Tuesday as a steep drop in global oil prices hit Australian fuel refiners and energy companies.

Viva Energy stock fell 19 cents, or 6.57%, to close at A$2.70, after trading between A$2.67 and A$2.81. About 5.7 million shares changed hands. The company's market value fell to about A$4.5 billion.

Rival fuel refiner and retailer Ampol fell about 5%.

Oil slides

Oil prices fell sharply overnight as the United States and Iran signaled a willingness to pursue peace talks, even as the war in the Middle East entered its ninth month.

West Texas Intermediate crude traded near $96 a barrel after sinking 7.4% on Monday, while Brent crude settled below $105, according to Capital Brief.

Iranian President Masoud Pezeshkian said his government had been granted greater authority by the country's supreme leader to negotiate, while U.S. President Donald Trump signaled potential progress in discussions, Bloomberg reported.

Energy sector hit

The energy sector was the weakest performer on the Australian market on Tuesday, falling as much as 4.1% during the session. Woodside Energy fell 3.5%, and Santos lost 1.8%.

The broader S&P/ASX 200 index rose 0.34% to 8,886.8, supported by gains in airlines and other companies that benefit from lower fuel costs.

A war-time winner

Viva, Australia's second-largest vertically integrated fuel supplier, has benefited from tight fuel supplies and higher prices since the conflict in the Middle East disrupted oil flows through the region.

Refining margins jumped sharply in 2026, boosting earnings for companies such as Viva and Ampol that operate local refineries. Viva operates the Geelong refinery in Victoria.

That made Viva one of the market's strong performers this year. Before Tuesday, the stock had gained about 34% in 2026, according to Market Index, and it remains up about 46% over the past year.

Pullback from highs

The shares have retreated from a two-year high reached in mid-October. Viva closed at A$3.10 on Oct. 16, meaning Tuesday's close is about 13% below that level.

Peace risk

Analysts say the prospect of a resolution to the conflict poses a risk for fuel refiners. If peace talks succeed and oil supplies normalize, refining margins could fall from elevated levels, reducing the windfall profits companies such as Viva have enjoyed.

However, the outlook remains uncertain. Reports of fresh U.S. strikes on Iran emerged midday Tuesday, highlighting the fragility of any progress toward peace.

Midterm elections

The decline in oil prices also comes as U.S. voters head to the polls in midterm elections, with Trump and the Republican Party facing political pressure over high energy costs.

What's next

Viva's share price is likely to remain closely tied to oil prices, refining margins and developments in the Middle East.

Investors will watch whether U.S.-Iran talks lead to a lasting agreement that could bring energy prices down further.