The U.S. Supreme Court ruled 8-0 in favor of Chevron regarding coastal erosion lawsuits filed by Louisiana. This decision moves the litigation from state to federal court. The justices found Chevron’s World War II oil refining for the federal government justified the jurisdictional change.
Chevron shares opened significantly lower despite the favorable ruling. A sharp drop in crude oil prices weighed on the broader energy sector.
Oil prices fell after Iran reopened the Strait of Hormuz to commercial traffic. The announcement eased geopolitical tensions that had previously elevated market prices.