Hedge Funds Ramp Up Bearish Oil Bets Amid Iran-US De-escalation Hopes

Hedge funds have significantly increased their short positions on US crude oil, reaching a five-month high. This shift in market sentiment is driven by expectations surrounding a preliminary memorandum of understanding between Washington and Tehran. Investors are betting that a potential diplomatic breakthrough could stabilize tensions in the Middle East, leading to an increase in oil supply flowing through the critical Strait of Hormuz. As traders anticipate a rise in global supply, the bearish outlook reflects a growing belief that the current geopolitical risk premium attached to oil prices may soon begin to fade. #XAUTUSDT