ConocoPhillips shares declined 2.42% on Wednesday, reversing part of a five-day gain of 5.13% and sitting up 23.5% year to date. The drop contrasts with persistent Middle East tensions and follows similar setbacks at Exxon Mobil and Halliburton.

Jim Cramer argued that the retreat of major energy stocks signals that crude’s geopolitical risk has peaked, drawing parallels with the 1991 Gulf War sell-off when oil prices unexpectedly fell. He cited energy leaders’ price action as evidence that worst-case scenarios, such as a prolonged Strait of Hormuz closure, are unlikely to materialize.

With crude risk viewed as defanged, Cramer sees a green light for investors to rotate out of energy into high-growth sectors, anticipating a broad-market snapback rally. This perspective suggests potential shifts in capital toward technology and other cyclical industries as bearish oil sentiment wanes.