Six participating nations issued a joint statement condemning Iran’s military activity and committing to protect safe passage through the Strait of Hormuz, one of the most important routes for global energy shipments. The announcement was released through official channels linked to UK Prime Minister Keir Starmer, and markets quickly shifted their attention to the immediate effect on oil supply risk and broader risk assets.
Oil Pulls Back After Diplomatic Response
After the statement, benchmark West Texas Intermediate crude fell nearly 2% to $93.80, while Brent crude posted a similar decline. U.S. Treasury Secretary Scott Bessent said on Thursday that the administration could consider easing sanctions on Iranian oil tankers and might also use the Strategic Petroleum Reserve to limit disruption. Even with that retreat, oil remained well above levels seen before the crisis.
Bitcoin Leads While Major Altcoins Lag
Crypto markets did not move in unison. Bitcoin outperformed major alternative tokens including Ether, XRP, and Solana, all of which recorded gains of less than 1%. The report linked the move to relief over energy-price shocks and the policy response from major governments, but the muted reaction across most altcoins showed that capital was still concentrating in Bitcoin rather than spreading evenly across the market.
Volatility, though, did not disappear. Tensions in the Middle East remained unresolved, and oil continued to trade above an important technical support area near $92. Analysis cited from Mott Capital Management said the energy market kept an upward bias unless that level breaks. For crypto, that leaves pricing closely tied to macro headlines instead of trading on sector-specific drivers alone.
U.S. Stocks Stay Under Pressure
Equities faced a weaker tone through the end of the week. The Dow fell about 1.2%, the S&P 500 lost 0.4%, and the Nasdaq slipped 0.1%. Both the Dow and the Nasdaq are now trading roughly 8% below their recent record highs.
Technical signals also turned more cautious. The S&P 500 closed below its 200-day simple moving average for the first time since May of last year, a level many traders watch for changes in momentum. Against that backdrop, Bitcoin’s relative strength stood out, though it was still unfolding inside a market environment defined by sharp swings.
Fed Uncertainty Keeps Macro in Focus
The Federal Reserve remained central to pricing across risk assets. Fed Chair Jerome Powell said the outlook for growth and inflation was still uncertain, and market participants broadly expect rates to stay unchanged for now. Policymakers have also acknowledged that one rate cut could still happen this year if conditions support it.
With no firm monetary-policy support in place, markets have become more sensitive to changes in energy prices and geopolitical developments. The main earnings season is nearly over, and only a small number of notable reports, including GameStop and Carnival, are due in the coming week. That leaves macro events and the energy market at the center of attention.