Bitcoin surged toward $82,000 Monday, while oil prices tumbled 6% as news of progress in US-Iran peace talks reignited investor appetite for risk assets.
Futures tied to the tech-heavy Nasdaq also climbed more than 1% during European trading, as a report from Axios indicated Washington and Tehran are close to signing a one-page memorandum of understanding aimed at ending hostilities.
The draft agreement reportedly involves negotiations between US envoys Steve Witkoff and Jared Kushner and Iranian officials. Key concessions under discussion include Iran agreeing to remove highly enriched uranium from the country, a longstanding US demand.
Traders responded by shifting into risk assets and reducing energy exposure, betting on the normalization of oil flows through the Strait of Hormuz, which has been disrupted by Iranian mining operations since late February.
Still, some analysts remain cautious. Justin Low, a currency analyst at ForexLive, expressed skepticism about Iran ceding ground on nuclear issues, saying, "I'm a bit skeptical on the final point about Iran ceding ground on the nuclear front. But we'll have to wait and see, I guess."