[Morgan Stanley Downgrades European Energy Stocks Due to Hormuz Strait Agreement] BlockBeats News, June 19 – As oil prices retreat and shipping in the Hormuz Strait gradually returns to normal, Morgan Stanley strategists have downgraded the rating of European energy sector stocks. The research team, led by Marina Zavolok, lowered the sector's rating from Overweight to Neutral, citing that the energy sector typically underperforms the broader market after geopolitical tensions peak. The strategists removed six energy stocks from the European Focus Stock List, replacing them with three banking stocks, two utility stocks, and one copper company stock. Analysts noted that the European stock market has not yet fully priced in the positive impact of the resumption of shipping in the strait. Investors may next turn their attention to a potential peace agreement in Ukraine.