USO ETF (USO) is trading 2.4% down today as crude prices fall on reports that U.S.–Iran negotiations are making progress toward reopening the Strait of Hormuz.

  • Reopening the strait would mitigate a significant geopolitical supply risk that has previously supported oil prices and oil-linked assets.
  • Broader energy market trends indicate that improved supply expectations are easing crude prices and weighing on the fund's near-term performance.