US stocks staged an intraday reversal after reports surfaced of progress toward a deal between Washington and Tehran. What started as a red session flipped green as traders recalculated the odds of a diplomatic resolution that could reshape global energy markets.
Oil was the first domino. Brent crude dropped roughly 5%, falling to around $94 per barrel as de-escalation hopes took hold.
The Strait of Hormuz carries up to one-fifth of the world’s oil supply. That narrow waterway between Iran and Oman is essentially the jugular vein of global energy markets.
Bitcoin also caught a bid, rebounding toward $77,000 amid the broader risk-on mood. The cryptocurrency had been trading in a range between $71,000 and $77,000, and deal optimism pushed it toward the upper end. Iran has reportedly utilized Bitcoin for transit fees through the Strait of Hormuz, charging roughly $1 per barrel.
Draft memoranda of understanding are not signed agreements. Both sides have acknowledged significant unresolved issues, and US officials and Iranian sources have publicly confirmed that a final agreement was not imminent as of late May. Volatility in oil, equities, and crypto is likely to remain elevated until there is either a signed deal or a definitive breakdown in negotiations.