Shares of United States Oil Fund LP (NYSE:USO) are trading higher Friday afternoon as crude prices surged amid escalating geopolitical tensions in the Middle East, boosting investor appetite for energy-linked assets. Here’s what investors need to know.
- United States Oil Fund stock is surging to new heights today. Why is USO stock surging?
Crude Oil Prices Surge As Supply Disruption Fears Intensify
The move came as West Texas Intermediate crude climbed above $97 a barrel, while Brent crude rose to $110, extending a sharp rally tied to growing concerns over supply disruptions.
Market sentiment was rattled after Iran reiterated its hardline position on the Strait of Hormuz, saying it would not engage in talks while under attack. Traders also reacted to continued strikes on key energy infrastructure, including Qatar's South Pars LNG field and major Kuwaiti refineries, developments that intensified fears of tighter global oil supply.
The broader market moved in the opposite direction. U.S. equities fell broadly by midday, with the S&P 500 down 1.5%, the Nasdaq-100 off 1.95%, and the Russell 2000 losing 1.35%, as rising oil prices stoked stagflation concerns.
USO Shares Surge Friday Afternoon
USO Price Action: United States Oil Fund shares were up 4.65% at $122.82 at the time of publication on Friday. The stock is trading near its 52-week high of $125.19, according to Benzinga Pro data.
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