United States Oil Fund (USO) Hits New 52-Week High As Iran War Escalation Lifts Oil

United States Oil Fund (NYSE:USO) shares are trading at a new 52-week high Thursday morning as investors reacted to another escalation in the U.S.-Israel-Iran war, with fresh signs that the conflict could further disrupt global oil flows and raise the risk premium across crude markets. United States Oil Fund stock is approaching key resistance levels. Why are USO shares at highs? Threats To Iranian Energy Assets Raise Oil Risk Premium The latest developments included President Donald Trump warning that the U.S. could strike Iran's power infrastructure and oil facilities within two to three weeks if talks fail, while EU officials and China separately stressed the need to restore safe navigation in the Strait of Hormuz amid shipping disruptions tied to Iranian attacks. That matters for USO because the fund is designed to track movements in front-month WTI crude futures. When geopolitical tensions threaten oil production, export infrastructure or key transport chokepoints, traders typically bid crude prices higher on fears that global supply could tighten or become harder to move. Hormuz Shipping Fears Can Quickly Push Crude Higher The Strait of Hormuz is especially important because it is one of the world's most critical energy shipping lanes. So, when officials are openly discussing disrupted Gulf shipping, alternative port routes and the need to secure safe passage, the market tends to assume a higher probability of supply shocks, delivery delays or broader energy-market instability. In this case, the combination of possible strikes on Iranian oil facilities, warnings around Baghdad militia threats and continued regional military action appears to be reinforcing a bullish crude setup, helping lift USO alongside oil prices. USO Reaches Overbought Territory USO's RSI has mostly trended in the neutral range over the past six months, with periodic pushes into overbought territory, particularly during the recent rally into new highs. Lately, RSI has been holding near the upper end of neutral and briefly above 70, suggesting strengthening momentum with occasional overbought conditions rather than sustained extremes. USO Price Action: United States Oil Fund shares were up 10.77% at $137.46 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data. Image: Shutterstock