The market, which closed the day with a decline in crypto currencies, showed signs of recovery in the minutes after the session of the US stock markets closed. It was observed that the news that US and Israeli officials were holding talks on a one-month ceasefire in the region was quickly reflected in the prices.
Ceasefire Negotiations in the Region Affected the Markets
It was stated that the talks were conducted by Steve Witkoff and Jared Kushner, advisors to the US Presidency. Jared Kushner stands out as a name that has been involved in diplomacy and mediation efforts in the Middle East for many years. Allegedly, the main item of the ceasefire talks includes new steps that will reduce tension in the region.
Within the scope of the negotiations, the complete elimination of Iran’s current nuclear program and a commitment that the country would never have nuclear weapons were among the topics discussed. It was observed that these developments were especially reflected in the energy and commodity markets.
Sudden Change in Cryptocurrency and Commodity Prices
Expectations that the ceasefire could be announced in a short time first led to a significant movement in oil prices. Brent oil fell from $104 to below $100 in a few minutes. A similar fluctuation occurred in the cryptocurrency market.
Bitcoin was hovering around the level of 69 thousand dollars with the loss of value during the session. However, after the news of the peace meeting, it reacted quickly and approached the level of 70 thousand dollars. Index futures contracts in the US stock markets also responded to the positive news with slight increases.
Global developments have once again shown that steps that reduce uncertainty in financial markets bring positive pricing, especially in risky assets, in the short term.
News that political and military tensions in the Middle East may decrease were instantly reflected in prices in both traditional markets and crypto assets.
