USO ETF (USO) is trading 6.7% down today as crude oil gives back its recent geopolitical risk premium following the U.S. decision to pause a planned military strike against Iran.
- The pause in military action has significantly reduced the perceived risk of major supply disruptions in the Middle East.
- Traders are actively unwinding bullish crude positions, weighing on oil-linked assets despite gains in the broader U.S. equity markets.