Energy stocks were trading lower on Wednesday, as oil prices edged down ahead of the Federal Reserve's interest-rate decision and as continued disruptions in the Middle East kept supply risks elevated.

Shares of Diamondback Energy tumbled 9.2%, to $192.13, while shares of EOG Resources were down 5.6%, to $145.20. Devon Energy's stock slipped 4.5%, to $49.04, and ExxonMobil's stock was off 3.1%, to $164.15.

Chevron's stock fell 2.6%, to $212.06, while shares of BP and Shell fell 2.7%, to $45.71, and 2.4%, to $96.58, respectively.

Oil futures gave back some ground after settling Tuesday at their highest levels since May 19 on wider threats to shipping and energy facilities in the Middle East.

The pullback came as the Fed is due to announce its interest-rate decision later Wednesday, following a two-day policy meeting. It is widely expected to raise its benchmark rate for the first time since 2023. Higher interest rates can weigh on economic activity and, in turn, oil demand, The Wall Street Journal reported.

At the same time, Saudi Arabia is increasingly redirecting crude toward Persian Gulf terminals after attacks forced the shutdown of its East-West Pipeline, a key alternative export route when flows through the Strait of Hormuz are constrained.