At the time of writing, Bitcoin is holding above the $68,000 mark, while most altcoins have slipped back into the red. Notably, AVAX, which surged sharply yesterday, experienced an equally swift decline. The global attention is now fixed on the approaching 12-hour deadline set by former US President Donald Trump regarding Iran, with no apparent sign of a ceasefire as the end of the deadline draws near.
Oil markets reflect growing anxiety
Mounting geopolitical fears are once again driving up oil prices. Concerns grew after Trump hinted that US strikes on Iran might intensify on Tuesday, prompting a surge in crude. Yesterday’s statements from US authorities further eroded hopes of a near-term ceasefire. Analysts warn that any imminent military operation could undermine ongoing efforts to keep the Strait of Hormuz open, potentially pushing oil prices even higher. As a result, the price of oil jumped past $112 per barrel following the latest statements.
Earlier this week, Trump warned that the US military would destroy all Iranian bridge and energy infrastructure if Tehran failed to accept American terms. Iran responded by laying out a list of 10 conditions in negotiations, which US officials described as “overly demanding.”
Allegations have surfaced that Iran informed mediator Pakistan of its refusal to agree to a ceasefire. According to the state-run Islamic Republic News Agency, Tehran is demanding the permanent end of hostilities, the easing of international sanctions, the launch of reconstruction efforts, and the establishment of a protocol for safe passage through the Strait of Hormuz.
Today, Iranian sources announced that several foreign leaders and intelligence officials are engaged in mediation initiatives. Meanwhile, another source confirmed that the US offer of a temporary ceasefire was declined.
Cryptocurrency traders brace for volatility
The next 12 hours are expected to bring significant turbulence for digital assets. Qatari officials voiced concerns about mounting tensions as this article was being prepared. Trump’s decision to impose a midweek deadline for negotiations, despite potential market upheaval, has confounded analysts, especially as it follows six previous postponements. If no agreement is reached by Wednesday at 3:00 a.m., the White House is widely expected to launch its most decisive operation to date.
US equity markets opened the day with a cautious tone, and cryptocurrencies appear to be moving in tandem with traditional stocks. Volatility is likely to increase as headlines emerge in the coming hours. If a ceasefire remains elusive as the deadline approaches, traders may opt for partial profit-taking, driving renewed selling pressure.
While oil has retreated somewhat from its $112 peak, it remains above $107 per barrel. Should prospects for a deal brighten or the Strait reopen, prices could swiftly slip back into double digits. Such a scenario would also likely lift cryptocurrencies—or, depending on developments, the reverse could also be true.
According to the Islamic Republic News Agency, Iran is demanding an end to the conflict, sanctions relief, the start of rebuilding, and a protocol for safe transit in the Strait of Hormuz.
