U.S. and Iranian negotiators reportedly reached a draft 60-day memorandum of understanding to extend a ceasefire and begin talks around Iran’s nuclear program, though President Donald Trump has yet to approve the agreement, according to Axios.
The report followed overnight U.S. airstrikes on an Iranian military site near the Strait of Hormuz, the critical energy shipping route that has dominated macro traders’ attention in recent months.
Stocks and bonds moved higher while oil fell on the news — the Nasdaq turned positive to gain 0.6%, and WTI crude tumbled below $90 per barrel. Crypto markets, however, remained under pressure. Bitcoin failed to hold even a modest bounce and slipped back below $73,000, down 2.7% over the past 24 hours.
Following the Axios report, Treasury Secretary Scott Bessent warned the U.S. would “not tolerate” any attempt to impose tolls on shipping through the Strait of Hormuz, vowing aggressive sanctions against any parties involved in disrupting commercial transit. “Oman, in particular, should know that the U.S. Treasury will aggressively target any actors involved — directly or indirectly — in facilitating tolls for the Strait and any willing partners will be penalized,” he wrote.
Adding to the macro pressure, the Fed’s preferred inflation gauge — the Personal Consumption Expenditure Index (PCE) — rose to 3.8% year over year in April, its highest level in nearly three years, up from 2.8% in February. The reading marked the first inflation report released under Federal Reserve Chair Kevin Warsh.
“The inflation picture is becoming increasingly uncomfortable for the Fed. This is not just a headline inflation problem: core inflation is moving the wrong way too,” said Olu Sonola, head of U.S. economics at Fitch Ratings. “Price pressures are likely to persist over the next few months, and while the Fed cannot fix a supply shock, it cannot ignore one that is feeding into underlying inflation. The Fed is stuck — and the heat is clearly being turned up.”
Source: Bitcoin Slides Below $73,000 as Crypto Shrugs Off U.S.-Iran Ceasefire News