USO is trading at $128.07, down -3.13%, as traders viewed new Iran sanctions as economic, not military escalation.
- WTI crude fell more than 3% as investors unwound the geopolitical risk premium lifting oil prices.
- Reports of diplomatic engagement involving Iran and Pakistan further reduced immediate supply-bottleneck concerns.
- The move follows USO’s 1.80% decline on August 24, extending a reversal from recent gains; broader equities are higher, pointing to oil-sector and geopolitical repricing, not broad risk-off trading.