Reports indicate President Donald Trump is privately considering formally declaring the US-Iran war over, a development that lifted Bitcoin above $78,000 while crude oil prices moved lower. The discussions, which follow recent strikes and retaliatory attacks, reportedly involve advisors warning that escalation could cost Republicans the midterm elections. Trump favors ending the conflict as his administration assesses the costs of continued military action. The potential de-escalation has eased fears of inflation and further Federal Reserve rate hikes, supporting risk assets like Bitcoin. No formal announcement has been made, and the situation remains under review.
President Donald Trump is privately considering whether to formally declare the US-Iran war over, according to a recent report. The development lifted Bitcoin on Thursday, while crude oil prices moved lower.
Trump reportedly told advisers that he favors ending the conflict. His administration is assessing the costs of continued military action. The talks have not produced a formal announcement.
US officials said Trump expects economic pressure to influence Iran’s leadership. They believe it could force Tehran to dismantle its nuclear program.
Aides warn that extending the US-Iran war could damage Republican prospects in the midterms. The discussions followed more strikes across the Middle East, with Iran launching retaliatory missiles and drones against American forces.
Several US bases have been attacked by Iranian forces in multiple countries. Washington did not react immediately to the attacks, a restraint that supported Bitcoin.
The Secretary of State Marco Rubio gave separate diplomatic instructions to US embassies. They should persuade other states to cut off trade relations with Iran.
Oil prices soared before attacks but pulled back after reports that Trump was mulling over the situation. WTI traded below $91 per barrel on Thursday.
Increasing energy expenses brought worries over inflation and yet another rate hike by the Federal Reserve. Bitcoin, however, gained above $78,000.
New York Fed President John Williams said inflation was declining, easing fears of higher rates. His comments supported risk assets amid uncertainty surrounding the US-Iran war.
As of press time, Bitcoin is trading near $78,013, making gains of 0.53% within a few hours. The 24-hour trading volume dropped by 9%, according to CoinMarketCap.
