Oil and Dollar Retreat on Diplomatic Hopes
Markets reacted quickly after signs of a diplomatic opening between the United States and Iran. Brent crude fell 4.7% to $99.55, dropping below the $100 mark for the first time since mid-March, while WTI crude also moved lower and settled below $90 per barrel. The move reversed several weeks of gains in energy markets. At the same time, the US dollar softened as traders interpreted the proposal as the most meaningful step toward de-escalation since the latest hostilities began.
Lower oil prices may help ease inflation pressure in the near term, which in turn can reduce expectations of immediate Federal Reserve tightening. That matters for risk assets broadly, including equities and cryptocurrencies, because it lowers concern about a sharper liquidity squeeze.
Equities Rally While Crypto Stays More Cautious
Risk appetite improved across traditional markets. Futures tied to the S&P 500 and Dow Jones each rose around 0.7%, while Nasdaq 100 futures gained close to 0.9%. Asian stocks advanced 1.9%, and European markets also pointed higher. Crypto, however, entered the week with a more measured tone.
Bitcoin managed to hold above $70,000 after a turbulent seven-day stretch and was trading near $71,000. Although it posted a daily gain of 0.9%, the asset remained down 6.4% on the week after previously touching $75,000 before retreating. FxPro chief market analyst Alex Kuptsikevich said bitcoin’s ability to remain at elevated levels despite intense volatility points to continued conviction among bullish participants.
Altcoins Diverge as Investors Watch Macro Signals
Performance across major cryptocurrencies was mixed. Ether recovered modestly to $2,164 on the day but was still down 9.2% for the week, making it one of the weakest large-cap tokens in that period. XRP added 0.2%, Solana rose 2.5%, and BNB slipped 0.5%. Dogecoin gained 1.7% but remained negative on a weekly basis. Tron stood out as the exception, posting gains on both the daily and weekly time frames.
The report also noted that bitcoin’s 90-day correlation with the S&P 500 remains strong, underscoring how closely digital assets are still tied to broader risk sentiment. Geopolitical uncertainty has not disappeared, and reduced maritime activity around the Strait of Hormuz continues to signal caution in energy logistics. Investors are now looking ahead to upcoming US import and export price data, which could shape the next move in both macro markets and crypto.