Oil prices dropped about 4% after the reported US–Iran peace deal, as the market starts stripping out the geopolitical risk premium that had been propping prices up.
With expectations that the Strait of Hormuz could reopen and supply routes normalize, traders are now pricing in fewer supply disruptions, which is pushing crude lower.
Is it time to short? Possibly—but after such a sharp drop, a short-term bounce or consolidation wouldn’t be unusual before the next move.
For now, the broader bias leans bearish as the market adjusts to the new supply outlook.
CLUSDT
Perp
79.47
+0.25%