Oil crashing on Iran deal hopes — bet on even lower prices if the ceasefire sticks
Oil just had its worst month in six years because President Trump says the U.S. is close to a deal with Iran that could end the conflict and reopen the Strait of Hormuz — a critical shipping route for global oil supply.
Idea
Oil is already posting its biggest monthly drop in six years, and the main catalyst — a U.S.-Iran peace deal — hasn't even been signed yet. Trump said a 'final determination' is coming, which means the market is only partially pricing in the full resolution. If the Strait of Hormuz reopens after being shut since February, a huge amount of oil supply will flood back into the market, pushing prices even lower. Big oil companies like Chevron and Exxon would also see their margins squeezed, making the energy sector vulnerable as a whole.