U.S. President Trump publicly said that oil prices fell by ten dollars that day, calling it the largest single-day drop in history.
The market action supports that claim. During Monday’s U.S. trading session, both Brent and WTI crude fell by more than seven percent, rapidly erasing some of the premium that had built up due to disruptions to Middle Eastern supplies.
The trigger came from diplomatic signals. U.S. Secretary of State Rubio said over the weekend that no decision had been made on a new round of military action and that he favored resolving the issue through negotiations. Iranian Foreign Minister Araghchi said that if Washington showed sincerity, there was still room for the two sides to reach an agreement. Mediators from Qatar and Pakistan have been working behind the scenes for several consecutive days, with the proposal centered on linking passage through the strait to steps toward compliance.
Risk assets breathed a collective sigh of relief. The Dow Jones Industrial Average rose by more than 500 points at one point during the session, with the S&P 500 and Nasdaq following suit. Gold and silver also recouped some of last week’s losses. Pricing for $BTC and $ETH now has to reflect two things at once: diplomatic progress in the Middle East and the Federal Reserve’s path in December.
The real tests lie in two places: the results of the November 3 vote, and whether negotiations can turn verbal signals into enforceable terms.
The market action supports that claim. During Monday’s U.S. trading session, both Brent and WTI crude fell by more than seven percent, rapidly erasing some of the premium that had built up due to disruptions to Middle Eastern supplies.
The trigger came from diplomatic signals. U.S. Secretary of State Rubio said over the weekend that no decision had been made on a new round of military action and that he favored resolving the issue through negotiations. Iranian Foreign Minister Araghchi said that if Washington showed sincerity, there was still room for the two sides to reach an agreement. Mediators from Qatar and Pakistan have been working behind the scenes for several consecutive days, with the proposal centered on linking passage through the strait to steps toward compliance.
Risk assets breathed a collective sigh of relief. The Dow Jones Industrial Average rose by more than 500 points at one point during the session, with the S&P 500 and Nasdaq following suit. Gold and silver also recouped some of last week’s losses. Pricing for $BTC and $ETH now has to reflect two things at once: diplomatic progress in the Middle East and the Federal Reserve’s path in December.
The real tests lie in two places: the results of the November 3 vote, and whether negotiations can turn verbal signals into enforceable terms.
