US and Iran Near Agreement to End Conflict

The news headline points to a reduction in geopolitical risks, which is generally viewed positively by markets. Although GOOGL shares experienced a decline in the last close, the RSI at 34.8 is approaching oversold territory, indicating potential for a short-term recovery. While the MACD remains in negative territory, the price trading below both the 20-day and 50-day moving averages presents a technically weak outlook. However, the positive impact of geopolitical developments may partially offset the weakness in technical indicators. A short-term upward move is possible, but its strength may be limited.

The news could reduce the geopolitical risk premium, creating downward pressure on Brent oil. Technical indicators already point to weakness: RSI at 44 is below the neutral zone, MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages. A continuation of the short-term downtrend is likely.

The US‑Iran agreement may reduce supply risk in the Middle East and offer short‑term support to WTI. However, the current downtrend and negative MACD indicate that the price may not rebound immediately. A modest rise is expected within 1‑3 days, though volatility may continue.

Although the news of reduced geopolitical risks has created expectations of a decline in oil prices, XOM stock fell 4.7% in the last session, with its RSI dropping to 43, approaching oversold territory. The MACD is below the signal line and in negative territory, but a short-term recovery potential may emerge. Trading below the SMA20 and SMA50 indicates technical weakness, yet the deal news could reduce uncertainty in the energy sector, providing short-term support for the stock. Therefore, an upward move is expected with low-to-medium confidence.