U.S. crude oil ETFs skyrocketed overnight after President Donald Trump announced an extension of “Operation Epic Fury,” warning of relentless military strikes on Iran for another “two to three weeks.” The geopolitical escalation coincides with a historic decoupling between equities and oil markets.
Crude Oil Markets React
Energy markets reacted violently to the prolonged military timeline as Trump said, “We are going to hit them extremely hard over the next two to three weeks,” during his address.
The United States Oil Fund (NYSE:USO), which tracks WTI Crude futures, surged 5.85% in overnight trading to reach $131.35, while the United States Brent Oil Fund (NYSE:BNO), tracking Brent Crude, leaped 6.30% to hit $53.50.
Despite the surge, Trump downplayed domestic energy risks, claiming the U.S. is insulated. “We have so much gas,” he noted. “We produce more oil and gas than Saudi Arabia and Russia combined.”
Historic Market Divergence
The ongoing conflict has triggered an unprecedented fracture in broader financial markets. According to data from The Kobeissi Letter, the …
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