United States Oil Fund (NYSE:USO) shares moving higher as crude oil prices climb, driven by escalating tensions in the Middle East and uncertainty around whether a ceasefire can be reached before the April 7 deadline set by President Donald Trump.

Geopolitical Tensions Keep Oil Elevated

Oil markets are reacting to a series of developments that point to continued instability around the Strait of Hormuz — a chokepoint that handles roughly 20% of global oil shipments.

President Trump warned that Iran must reopen the strait by Tuesday or face severe consequences, while Iranian officials indicated they do not intend to return the waterway to normal operations. The back‑and‑forth has reinforced concerns about supply risks.

The situation has been further complicated by reports from the region, including statements from the Islamic Revolutionary Guard Corps suggesting a "new order" in the Persian Gulf and signaling resistance to U.S. and Israeli pressure. Meanwhile, the IDF said it carried out an airstrike that killed a senior IRGC official involved in oil‑related operations, adding another layer of uncertainty to the outlook.

Ceasefire Talks Remain Unsettled

Multiple reports indicate that the U.S., Iran, and regional intermediaries are discussing a potential 45‑day ceasefire as a first step toward a broader agreement.

Negotiations are being conducted indirectly through mediators in Pakistan, Egypt and Turkey. However, sources cited by Axios suggest that reopening the Strait of Hormuz and resolving issues around Iran's enriched uranium would likely require a more comprehensive, second‑phase deal.

USO Price Action: United States Oil shares were up 1.11% at $139.45 at the time of publication on Monday. The stock is trading near its 52-week high of $140.00, according to Benzinga Pro.

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