Oil Below $80, $BTC Below $63K: Diplomacy Drops, Crypto Doesn't 🤝

Oil prices fell more than 6% on Friday, plunging below $80 per barrel after surging more than 20% the previous month, as President Donald Trump confirmed that US-Iran peace talks would begin Monday following the cancellation of a major military operation at the request of Saudi Arabia, the UAE, and Qatar. Iran's Foreign Minister Abbas Araghchi said negotiations between Iran and Oman over the Strait of Hormuz are in the final stages, and Foreign Ministry spokesperson Esmaeil Baghaei stated the talks aim to establish a mutual mechanism for managing the strait. Trump indicated that a broader arrangement could follow, telling reporters "There's a deal on Hormuz and then there will be a" before the remark was cut off in the source material.

Despite the decline in crude, Bitcoin extended losses, trading below $63,000, while the US dollar index and the 10-year Treasury yield also fell. The divergence between easing energy prices and continued weakness in digital assets underscored the sector's sensitivity to risk sentiment that goes beyond traditional macro channels. Traders cited by multiple outlets attributed the move to broader positioning rather than the geopolitical shift alone.

The price action followed weeks of escalating tensions in the Gulf, where threats to commercial shipping through the Strait of Hormuz had pushed oil-linked risk premiums sharply higher. With diplomatic channels now reopened and a Monday start confirmed, market participants are watching for follow-through statements from Tehran, Washington, and Muscat to gauge whether the de-escalation holds. No immediate response was recorded from Iranian officials on the timing of the announced talks.

The simultaneous drop in crude, the dollar, and yields typically reduces liquidity pressure on risk assets, yet $BTC failed to benefit, leaving its weekly performance firmly negative. Ethereum and other major altcoins tracked Bitcoin's downside, with market analysts pointing to position unwinds and tepid spot demand rather than any direct policy effect. As of press time, Brent and WTI benchmarks were both trading under the $80 threshold, with Bitcoin hovering near $62,800.