After issuing his sixth deadline for reaching a deal, Trump is treading carefully to keep the negotiating table from collapsing. The uranium issue, one of the main conditions for an agreement, appears to be heading toward resolution. With the ceasefire set to expire on Tuesday, negotiations are expected to intensify this weekend. These fast-moving developments are fueling a rally in cryptocurrencies.
US prepares $20 billion deal
According to Axios sources, the United States is preparing a $20 billion agreement under which Iran would hand over its stockpile of uranium. This move would effectively bring Iran’s nuclear weapons program to a halt. Trump’s ability to credibly announce that he has neutralized the nuclear threat is seen as crucial for his standing in domestic politics. Considering the costs of continued conflict, the $20 billion price tag is relatively modest.
Securing a long-term deal at the table would also be in Iran’s favor. If Iran agrees to surrender its uranium, it likely has received several commitments—possibly including the partial or complete lifting of sanctions.
Axios reports that the second round of US-Iran peace talks will take place this weekend in Pakistan, likely on Sunday. This news prompted US oil prices to fall to $90 per barrel, while American stock markets and cryptocurrencies climbed. Should positive news emerge on Sunday, risk markets may kick off the week on an exceptionally strong note.
In the past 24 hours, 24 ships have passed through the Strait of Hormuz, and the upward trend in vessel traffic is viewed as a positive sign.
S&P 500 futures have surged 12% from their March 30 lows on news of the second round of US-Iran talks. This has resulted in a major short squeeze across the market.
Crypto markets surge
Bitcoin (BTC) soared to a daily high of $76,370, while ETH found buyers near the $2,400 mark. As this article was prepared, Iran’s Foreign Minister announced that the Strait of Hormuz has been reopened to commercial shipping.
Announcing the development under the Lebanon ceasefire, the minister stated: “Throughout the remainder of the ceasefire, all commercial vessels are now completely permitted to pass through the Strait of Hormuz.”
BTC has reclaimed the $76,000 level, fueling more optimism for positive news on Sunday.
As anticipated, BTC is breaking through resistance in its current channel. Oil prices have dropped to their lowest level since April 8.
