Peace Negotiations Stall, Supply Fears Catapult Oil Upward

• • The daily chart shows a sharp V-shaped bounce from the support base, while the 1-hour chart maintains an uptrend with neat consolidation in the upper area.
• • Macro sentiment as of May 10-11, 2026, is filled with commodity market panic following the failure of US-Iran peace negotiations, triggering fears of global supply disruptions.

Geopolitical crises have once again become the main director controlling the global energy market. News publications on May 10-11, 2026, highlighted the failure to reach an agreement in the peace proposal between the US and Iran, a diplomatic impasse that instantly triggered supply chain panic among institutional traders. This fear sentiment acts as an adrenaline injection for the valuation of the oil fund (USOON). Technically on the daily (1D) chart, the price of this asset rebounded aggressively from its macro support zone, forming a V-shaped recovery structure that killed seller dominance attempts. On the 1-hour (1H) chart, this bullish thrust is perfectly maintained, where the price forms a local equilibrium at the $137.62 entry area without signs of volume exhaustion. The ignition of this energy crisis narrative is projected to continue pumping hedging fund flows, targeting a breakout to $142 up to testing the $148 resistance boundary over the next 3 days.

Geopolitical risk premiums are highly vulnerable to evaporating in the event of sudden diplomatic intervention. If peace sentiment revives and presses the price breaking the $134 watch wall, this commodity rally risks reversing into a deep correction.