Bitcoin extended gains to trade near $82,000 during the European morning on Wednesday.
Futures linked to Wall Street’s tech-heavy Nasdaq index rose more than 1% as risk assets rose across the globe, while oil plunged as reports of progress in US-Iran peace talks boosted risk-on sentiment. Futures tied to WTI crude fell 6% to $95.28 a barrel.
The moves followed an Axios report that Washington and Tehran are close to a one-page memorandum of understanding aimed at ending the war. The draft agreement is said to include negotiations between US envoys Steve Witkoff and Jared Kushner and Iranian officials, conducted both directly and through intermediaries.
The report gave hope for the normalization of oil flows through the Strait of Hormuz, which has reportedly been mined by Iranian forces. The disrupted currents since the end of February have wreaked havoc on energy markets around the world, especially in Asia.
Iran would agree to remove highly enriched uranium from the country, a longstanding U.S. demand that Tehran has previously resisted, according to the report. However, some market participants questioned the likelihood of a lasting breakthrough, particularly around nuclear concessions.
“I’m a bit skeptical about the last point about Iran giving up on the nuclear front. But we’ll have to wait and see, I guess,” said ForexLive currency analyst Justin Low.
Still, the prospect of de-escalation was enough to trigger a broad shift in positioning, with traders moving into risk assets and out of energy exposure on expectations of reduced geopolitical friction.
