Amid escalating U.S.-Iran tensions, investors are betting on further gains in oil prices, with one crude oil exchange-traded fund (ETF) recording its largest single-day inflow since the pandemic. Data indicate that approximately $200 million flowed into WisdomTree’s WTI crude oil exchange-traded product on Tuesday, boosting the fund’s total assets by more than a quarter to $915 million. This fund tracks oil prices through fully funded, collateral-backed swap contracts rather than holding futures directly, thereby reducing its direct footprint in the futures market.

Following U.S. President Trump’s threat of military action against Iran, one of the world’s largest oil producers, WTI crude futures surged nearly 7% last week—the biggest weekly gain since last October. However, as tensions appeared to ease and the broader commodities sector weakened at the start of trading on Monday, oil prices quickly gave back those gains. Days later, repeated military confrontations between Washington and Tehran have kept the risk of further escalation alive, and the recent fund inflows likely reflect investors positioning ahead of a potential rebound.

It has been reported that U.S.-Iran nuclear talks, originally scheduled for February 6, have been reinstated and will take place in Oman after multiple Middle Eastern leaders urgently lobbied the Trump administration not to abandon negotiations. The U.S. had earlier rejected Iran’s proposal to move the meeting from Istanbul, Turkey, to Oman—a standoff that sparked concern across the Middle East that Trump might resort to military action. At least nine countries in the region contacted the White House through top-level channels, strongly urging the U.S. not to cancel the talks.