Financial markets reacted strongly to a temporary cease-fire between the US and Iran, with most assets rising. Bitcoin surged toward $73,000 and gold climbed, while oil prices plummeted from nearly $120 to under $92 per barrel. The agreement aims to allow negotiations for a permanent peace deal and includes the safe opening of the Strait of Hormuz.
Markets responded in opposing ways to news of the two-week cease-fire between the US and Iran. While most assets went up, oil, which had rocketed after the conflict began, dumped hard.
Oil prices were impacted most significantly from the initial strikes. USOIL had surged from under $70 to $120 per barrel in about a week.
The latest threats from Donald Trump caused another sharp uptick late last week. His concerning statement yesterday led to Iran reportedly backing out of negotiations initially.
Hours later, Trump announced on his social media platform that both parties had agreed to a cease-fire. He added that the US had received a 10-point proposal from Iran, which they believe is a workable basis for negotiation.
Trump stated, “Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalized and consummated.” He later explained the US would help with traffic in the Strait of Hormuz and predicted a “Golden Age of the Middle East.”
Oil prices reacted immediately with a sharp nosedive. USOIL dropped from $117 to under $92 before recovering to $95, though it remains 40% higher than pre-war levels.
In contrast, Bitcoin skyrocketed from just over $68,000 to almost $73,000. It corrected to approximately $72,000 at the time of reporting.
Ethereum rose by almost 7% to near $2,250, while XRP, SOL, and DOGE also saw notable gains. Gold neared $4,900 after jumping from $4,650, and S&P 500 futures were up over 2.5%.
