USO Surges 24.1% as Oil Prices Reach Highest Levels Since 2024
United States Oil Fund LP jumped 24.1% last week as oil prices hit their highest since 2024 following escalating U.S.–Israel strikes on Iran. Energy Secretary Chris Wright predicts oil and gas prices will decline once the U.S. targets Iran’s ability to disrupt shipping through the Strait of Hormuz.
1. Geopolitical Escalation Boosts Oil Prices
Escalating U.S.–Israel strikes on Iran pushed global crude benchmarks to their highest levels since 2024, as concerns over regional supply disruptions spiked. Heightened tension around the Strait of Hormuz stoked fears of broader conflict, leading traders to bid up futures sharply.
2. USO Shares Jump 24.1%
United States Oil Fund LP surged 24.1% over the week in response to the oil price rally, while the United States Brent Oil Fund LP advanced about 17%. The dramatic gain underscores USO’s leverage to rapid shifts in geopolitical risk and crude market dynamics.
3. Energy Secretary Predicts Price Decline
Energy Secretary Chris Wright stated oil and gas prices will start to fall once the U.S. targets Iran’s capacity to attack tanker traffic through the Strait of Hormuz. This outlook offers a potential cap on further price spikes if U.S. operations succeed in securing key shipping lanes.