Oil Just Flipped From Fear Trade to Deal Trade 📉

Crude dropped sharply after reports suggested the US and Iran may be moving toward a framework that could gradually reopen the Strait of Hormuz.

Brent fell more than 6% in one session and briefly traded below $100, while another market wrap reported a 7%+ selloff as hopes grew around a limited truce and phased reopening.

Risk assets liked the signal.
Lower oil cools inflation fears, supports equities, and gives crypto more room to breathe. Precious metals also moved strongly, with gold holding above $4,700 and silver reported near or above the $80 zone in several market updates.

But this is not over.
Citi’s Max Layton warned oil could stay highly volatile until there is real clarity on whether a US-Iran agreement actually lands.

The market is not pricing peace yet.
It is pricing the possibility of peace.

#Oil #CryptoNews #Bitcoin

Does this de-escalation rally have legs, or is oil setting up the next trap?