USO is trading 7.1% down today as crude prices drop sharply, reversing last week’s spike after President Trump canceled planned strikes on Iranian energy infrastructure.
- Markets are reacting to the shift toward renewed negotiations, which has significantly eased fears of supply disruptions and reduced the geopolitical risk premium in oil.
- Broader risk sentiment is improving across the market, with U.S. equities moving higher as traders rotate away from defensive energy exposure.