Oil prices fell rapidly on the evening of April 7, while Bitcoin moved closer to 70,000 USD once again, as the market reacted to signals that a final diplomatic success between the United States and Iran might be imminent.
A report from CNN citing regional sources indicates that soon both sides are expected to have good news, with expectations that they may reach an agreement before President Donald Trump's deadline. This shift in stance occurred just hours after the market was preparing to cope with potentially heightened tensions in the Middle East.
Bitcoin rebounded to about 69,900 USD, recovering from daily losses, while oil prices fell from previous highs as traders assessed the reduced supply risk.
Trump's deadline pushed the market closer to the edge.
Earlier that same day, Trump set a strict deadline at 8:00 PM Eastern Time (midnight GMT) for Iran to accept the U.S. proposal, which includes reopening the Hormuz Strait.
He warned that if not followed, it would lead to a widespread attack on Iran's infrastructure, including power plants and transportation networks.
The statement escalated rapidly. Trump stated that all civilization would die tonight if an agreement could not be reached, while U.S. and Israeli attacks on various targets in Iran intensified before the deadline.
Iran responded by threatening retaliation in the region and urging citizens to form human chains around critical infrastructure.
The market reacted promptly. Oil prices surged amid concerns over disruptions in global supply routes, while risk assets, including crypto, experienced volatility. Recently, as positive diplomatic developments were reported, oil prices quickly dropped.
Diplomacy accelerated significantly in the last hour. Pakistan, acting as a key intermediary, has formally requested a two-week extension to keep the negotiation process ongoing.
Prime Minister Shehbaz Sharif has called on both sides to observe a temporary ceasefire and reopen the Hormuz Strait again as a gesture of goodwill.
The White House confirmed that Trump is considering this proposal, while U.S. officials stated that negotiations are ongoing, and Iran has signaled that it is also considering an extension.
Currently, as reports indicate that a deal may emerge tonight, the markets are shifting from panic to cautious hope, as the decline in oil prices and the recovery of Bitcoin suggest that traders are preparing for a de-escalation rather than an immediate conflict.