USO is trading 6.1% lower in pre-market action as crude prices tumble following a de-escalation in Middle East conflict.
- WTI and Brent futures fell over 5% after the United States and Iran halted active military strikes, unwinding the recent geopolitical risk premium in oil.
- Additional pressure comes from softer economic data out of China and a stronger U.S. dollar, both of which are weighing on global energy demand expectations.