USO is trading 5.3% lower in pre-market sessions as crude benchmarks give back recent geopolitical risk premiums following a shift in U.S. foreign policy.
- President Trump’s decision to halt planned strikes on Iranian energy infrastructure in favor of negotiations has sharply reduced fears of supply disruptions around the Strait of Hormuz.
- Reports indicating that OPEC+ will increase production quotas are adding further downward pressure on oil futures and dragging oil-linked ETFs lower.