Oil Price Drop Triggers Global Market Reactions, Bitcoin Falls
On Monday, oil prices fell almost 6% after US President Donald Trump announced the resumption of peace talks with Iran. Brent crude dropped to $83.55 a barrel while WTI plunged over 6% to $79.54 a barrel.
The latest drop in oil prices came as Trump said on social media that 'the perimeters of a deal' for the total opening of the Strait of Hormuz are being negotiated. At the same time, key members of OPEC+ said they would raise output by about 188,000 barrels a day in September.
The easing of concerns over inflation and higher interest rates resulted in Treasuries rallying, with the 10-year yield dropping to 4.66% after hitting its highest level since January 2025 just last week.
This put the US dollar under pressure, weighing it down along with authorities intervening in the foreign exchange market to support the yen.