# Oil posts worst month in 6 years as Iran deal looms — short energy stocks for more downside

_AI-generated trading idea · SHORT · USO, XLE_

> Canonical page: https://commonquant.ai/research/for-you/oil-posts-worst-month-in-6-years-as-iran-deal-looms-short-en--05885e52-8e8f-4e68-9a7f-a150199d8903

Oil just had its worst month in six years because the U.S. and Iran appear close to a deal that could end the war and reopen the Strait of Hormuz — a critical shipping route for global oil. If the deal goes through, a lot of oil will flood back into the market.

## Idea

Oil has been crashing for weeks on expectations that a U.S.-Iran deal will end the Strait of Hormuz shutdown and let oil flow freely again. President Trump says a final decision is imminent. If a deal is announced, oil prices could drop sharply as the market prices in millions of barrels returning — and energy stocks like those in XLE will get dragged down with them. Even if the deal is delayed, the trend is clearly pointing lower and there's no sign of a reversal yet.

## Key details

- Symbols: USO, XLE
- Timeframes: 1D
- Tags: \#macro, \#energy, \#geopolitics

## Community

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## News sources

- [Brent oil price posts biggest monthly loss in six years as market counts on a U.S.-Iran deal](https://www.cnbc.com/2026/05/29/oil-price-iran-deal-war-ceasefire-trump.html) — CNBC
- [Oil prices slide as Trump says the U.S. is close to an Iran deal](https://www.marketwatch.com/story/oil-prices-slide-as-trump-says-the-u-s-is-close-to-an-iran-deal-8af9ece2?mod=mw_rss_topstories) — MarketWatch

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