Occidental Petroleum's stock plummeted 5.04% during intraday trading on Tuesday, reflecting a sharp decline amid broader energy sector weakness.

The drop in Occidental and other energy stocks came as oil prices slid on signs that Washington and Tehran may revive talks following the start of a U.S. blockade of the Strait of Hormuz. Traders monitored whether shipping traffic through the vital chokepoint would resume, with Brent crude falling as much as 4.5% and West Texas Intermediate dropping up to 6.9%.

Iran is considering a short-term pause to its shipments through the Strait of Hormuz to avoid testing the U.S. blockade and scuppering a fresh round of peace talks. Turkey will host regional powers this week to discuss cease-fire proposals and a potential reopening of the strait, while the U.S. and Iran are in discussions on holding another round of face-to-face negotiations for a longer-term ceasefire.