Financial markets responded sharply after Washington submitted a 15-point diplomatic proposal to Iranian officials via Pakistani channels, aiming to de-escalate hostilities that began on February 28. The framework reportedly includes requirements concerning Iran’s nuclear program and seeks a 30-day truce. American and Iranian dialogue intensified as former US President Donald Trump’s envoys, Steve Witkoff and Jared Kushner, reportedly engaged directly with Iranian counterparts. Trump stated that Iran is considering a commitment not to pursue nuclear weapons or uranium enrichment.
Oil Market Drops As Diplomatic Overture Emerges
The diplomatic overture triggered immediate reactions in commodities. Brent crude oil dropped 4.7% to $99.55, slipping below $100 for the first time since mid-March. WTI crude also retreated, settling under the $90 per barrel mark, reversing several weeks of energy price gains. The fall in oil coincided with a softening US dollar as traders interpreted the proposal as the most substantial move towards peace since the onset of recent hostilities.
Crypto And Equity Markets React Amid Uncertainty
Equity index futures showed strong momentum after the news, with S&P 500 and Dow Jones futures rising about 0.7% and Nasdaq 100 futures gaining close to 0.9%. Asian stock markets rallied 1.9%, and upward signals were also seen in European markets. While equity optimism spread, the cryptocurrency sector approached the week with caution. Bitcoin stabilized above the $70,000 level after withstanding a turbulent seven-day stretch, currently trading at around $71,000. Despite a modest 0.9% daily gain, bitcoin has fallen 6.4% throughout the week, with its value previously reaching $75,000 before retreating.
Within the crypto sector, major altcoins posted mixed results. Ether saw a small daily recovery to $2,164, but remained down 9.2% over the week, the largest decline among major cryptocurrencies. XRP gained 0.2% on the day, Solana increased 2.5%, while BNB slipped 0.5%. Dogecoin advanced 1.7% but was still negative overall for the week. Tron emerged as the exception, recording gains both daily and weekly.
Alex Kuptsikevich, chief market analyst at FxPro, evaluated bitcoin’s resilience in volatile trading.
The fact that prices continue holding at these elevated levels demonstrates conviction among bullish market participants.
Despite the intense week, bitcoin’s 90-day correlation with the S&P 500 remains strong, highlighting ongoing linkages between equities and digital assets. The market has endured abrupt headlines, energy price shocks, and forced selling but appears to be searching for direction as geopolitical risks persist.
Declining global oil prices may dampen inflation pressures in the near term and reduce expectations of imminent Federal Reserve rate hikes. This dynamic eases the risk of tighter liquidity for all risk-based financial instruments, including equities and cryptocurrencies.
The Strait of Hormuz—one of the main arteries for global oil transit—remains effectively closed, with reduced maritime activity amid lingering uncertainty. Iranian state media has previously denied direct negotiation claims after Trump referenced “productive conversations.” Trump has indicated Iran responded constructively and noted that a large financial incentive might be part of a potential deal. Markets are also awaiting US import and export price data due Wednesday, which could impact broader sentiment.
