Oil crashing 20% on Iran ceasefire hopes — short the energy bounce before the deal closes
Oil has fallen 20% from its 2026 peak as President Trump signals the U.S. is close to a ceasefire deal with Iran. If the Strait of Hormuz reopens, the global oil supply shock that sent prices soaring could reverse fast.
Idea
Oil prices surged when the Iran war shut down the Strait of Hormuz — the world's most important oil shipping lane. Now Trump is publicly saying a deal is close, and oil has already dropped 20% from its peak. If a ceasefire actually happens and tankers resume flowing through Hormuz, the supply crunch that inflated oil prices vanishes almost overnight. That means oil companies and oil-tracking funds still have significant downside from here. The bond market is already pricing this in — Treasuries are having their best week since the war started specifically because falling oil reduces inflation pressure. The smart move is positioning for oil to keep sliding as the peace deal gets finalized.