Worries of a full-blown trade war and more supply entering the market sent oil futures tumbling to multi-year session lows on Wednesday, dragging energy stocks with it.

On Wednesday morning West Texas Intermediate crude ( CL=F ) dropped to the lowest level since 2023 before paring losses to settle at $66.21 per barrel. Brent futures ( BZ=F ) fell to levels not seen since December 2021 before closing at $69.24 per barrel.

Oil fell for a third straight session amid fears of a tariff war impacting economic growth, more crude supply about to enter the market as recently announced by the Organization of Petroleum Exporting Countries (OPEC), and efforts to end the Ukraine-Russia war.

Read more: What Trump's tariffs mean for the economy and your wallet

“It’s time to stop this madness. It’s time to halt the killing. It’s time to end this senseless war,” Trump said during his address to Congress on Tuesday night.

The White House has already floated the idea of lifting sanctions against Russia, a move that would allow the oil producer's energy products to flow more easily into the market.

"If sanctions on Russia are eased, that certainly could put downward pressure on oil, and of course President Trump has promised to lower energy prices. So there are huge implications," GasBuddy's Patrick De Haan told Yahoo Finance in a recent interview.

"For now, oil markets are threatening to breach the lower end of the price range oil [has] maintained for the past two years, in the mid-$60’s per barrel according to West Texas Intermediate prices," Rob Haworth, senior vice president and senior investment strategist at US Bank Asset Management, told Yahoo Finance.

"A breakthrough at that level could lead to more downside, especially if growth indications continue to slow in the US," he added.

Worries of an escalating trade war have put downward pressure on crude prices.

In a February note, Goldman Sachs analysts said oil prices could fall in the medium term "because persistent broad tariffs would weigh on global GDP and oil demand."

On Wednesday afternoon the White House said it had granted Ford ( F ), GM ( GM ), and Stellantis ( STLA ) a temporary reprieve from tariffs after a call with President Trump.

The relief came a day after the Trump administration implemented 25% tariffs against Canada and Mexico.

Oil's downtrend has also impacted energy stocks.

The S&P 500 Energy Select ETF ( XLE ) is relatively flat for the year, erasing its 7% lead among the rest of the sectors registered last month.

Stewart Glickman, deputy research director at CFRA Research, sees the risk for further downside given the current tariff war.

"We remain underweight and I think risk of underperformance continuing is significant," Glickman told Yahoo Finance. "If tariffs on Canada, Mexico and China are met by a series of ante raises by different sides, this could easily get worse."

@ines_ferre .