Oil and gas stocks extended their selloff Tuesday as crude prices slid to levels not seen in nearly five years, pressured by rising expectations of a Russia-Ukraine peace deal and mounting supply concerns.

West Texas Intermediate crude, as tracked by the United States Oil Fund (NYSE:USO), fell 2.6% to $55 a barrel, marking a fourth straight session of declines. Prices hovered near their lowest levels since January 2021.

Natural gas prices also weakened, with Henry Hub futures sliding nearly 3% to $3.89 per million British thermal units, on track for a sixth decline in seven sessions.

On Wall Street, oil and gas stocks bore the brunt of the selloff, underperforming other sectors. The Energy Select Sector SPDR Fund (NYSE:XLE) dropped 2.9%, its worst session since ...