USO is trading 4.2% up as crude oil prices rebound following a sharp two-day selloff triggered by easing U.S.–Iran tensions and progress in reopening the Strait of Hormuz.
- Crude prices stabilized near $81 per barrel after a 6% decline, as traders began bargain-hunting with much of the geopolitical risk premium now priced into the market.
- The recovery comes as investors rotate into traditional industrial and value sectors while awaiting the Federal Reserve’s interest rate decision on July 29.