USO is trading at $121.46, down 6% today as crude prices give back a portion of the recent geopolitical risk premium following an exceptionally volatile week.
- The move reflects a partial reversal of the price spike triggered by escalating U.S.–Israel threats against Iranian energy infrastructure and shipping routes as traders reassess the scope and timing of potential operations.
- Overall risk sentiment remains influenced by central-bank policy expectations and persistent energy-cost concerns following the drop from the July 31 close of $129.17.
- Markets continue to monitor the situation for confirmation of Iran-related developments while navigating broader macroeconomic risks.