WTI crude futures, tracked by the United States Oil Fund, surged to an overnight high of $119 per barrel before plunging to $93 within the same session, creating a $26 trading range—the second-largest in the contract’s history after April 2020. This extreme whipsaw directly influences USO’s net asset value and heightens trader focus on oil fund volatility.

Speculation of a coordinated G7 strategic crude release has raised hopes of price relief, but existing reserves of about 3 billion barrels equate to only 30 days of global demand. Such buffers are designed for short-term disruptions and are unlikely to make a meaningful dent in prices during a prolonged geopolitical crisis.

Tensions in the Strait of Hormuz, a chokepoint for roughly one-fifth of global oil flows, threaten further supply disruptions. Any escalation could exacerbate price swings and amplify volatility in funds like USO that mirror WTI futures movements.

U.S. gasoline prices have climbed over $0.40 per gallon in the past week, while diesel costs have surged, tightening refined fuel markets. Rising pump prices and inflation expectations could pressure USO investors as energy costs feed broader economic inflation and influence fund flows.