🔴 USO ETF (USO) is trading 4% down today as US-Iran diplomatic progress eases supply risk premium

USO ETF (USO) is trading 4% down today as crude prices fall in response to easing Middle East supply fears and diplomatic progress between the U.S. and Iran.

• The move is compressing the geopolitical risk premium that previously boosted oil prices, extending a multi-session slide from recent highs.
• The decline comes despite only marginal moves in major equity indices, highlighting sector-specific dynamics rather than broad market sentiment.
• Diplomatic breakthroughs are the primary driver behind the compression of the risk premium in the energy sector.