United States Oil Fund, LP is trading 3% down in pre-market sessions as crude oil prices retreat following a tentative U.S.–Iran peace deal and the reopening of the Strait of Hormuz.
- The removal of the supply-disruption premium is driving oil futures and oil-linked products lower as the geopolitical risk premium evaporates.
- Traders are rapidly repricing reduced risk and adjusting for weaker forward price assumptions following the reopening of the Strait.