bitcoin extended gains to trade near $82,000 during European morning trading on Wednesday.
Futures linked to Wall Street’s Nasdaq technology index rose more than 1% as risk assets rallied around the world, while oil plunged as reports of progress in U.S.-Iran peace talks boosted risk sentiment. Futures linked to WTI crude oil fell 6% to $95.28 a barrel.
The moves followed a report by Axios that Washington and Tehran are close to signing 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 raised hopes of normalization of oil flows through the Strait of Hormuz, which has reportedly been mined by Iranian forces. Disrupted flows since late 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 long-standing US 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 little skeptical about the last point about Iran giving ground on the nuclear front. But we’ll have to wait and see, I guess,” said ForexLive currency analyst Justin Low.
Still, the prospect of easing tension was enough to trigger a broad shift in positioning, with traders shifting into risk assets and exiting energy exposure in the expectation of reduced geopolitical friction.
