Global markets saw an uptick in risk appetite, accompanied by a sharp drop in oil prices. On Monday during European trading hours, reports of progress in peace talks between the United States and Iran led to increased demand for riskier assets. This development triggered notable movements across both energy and cryptocurrency markets.
Bitcoin maintains upward momentum
The rapid rise in Bitcoin’s price, which began during Asian hours, continued as European markets opened. The leading cryptocurrency approached the $82,000 level in European trading. According to data from CryptoAppsy, Bitcoin pushed toward this peak at the start of the week, while futures contracts tied to Wall Street’s tech-heavy Nasdaq index gained more than 1 percent. Cryptocurrency investors expect sustained market activity as risk appetite broadens.
Oil prices plunge as peace talks progress
In contrast, the oil market was influenced in a different direction by these developments. Futures contracts for US crude (WTI) dropped 6 percent, settling at $95.28 per barrel. This downward movement was notably driven by reports of a preliminary peace accord between the US and Iran, with claims that both sides are closing in on an agreement to end hostilities.
A report from Axios stated that US envoys—including Steve Witkoff and Jared Kushner—have held both direct and mediated talks with Iranian officials. The main focus of these discussions is restoring normal oil flows through the Strait of Hormuz, a critical passage that has recently faced disruptions. Since September, mines planted by Iranian forces in the strait have significantly hindered energy supplies to Asia.
Uncertainty surrounds peace agreement
According to Axios, the agreement is expected to include the removal of highly enriched uranium from Iran—one of Washington’s longstanding demands, which Iran has previously rejected. However, some market participants believe there is still no permanent breakthrough on nuclear weapons concerns.
Justin Low, currency analyst at ForexLive, noted lingering doubts on whether Iran would be willing to make concessions on its nuclear program in the final agreement, suggesting a wait-and-see approach may be necessary.
Nevertheless, expectations of easing tensions quickly influenced investor behavior. Risky assets gained favor, while positions tied to energy prices diminished. Some investors suggest that these developments could bring lasting changes to market prices in the medium term, though they warn that it’s too early to make definitive conclusions.
