The Nasdaq index has largely recovered from the 2 percent loss experienced at the beginning of the trading day on Thursday. This development emerged after reports that Iran was preparing a protocol with Oman to manage ship traffic in the Strait of Hormuz. It seems that this development has somewhat reduced the uneasiness in the region, which is a critical transit point for global oil transportation.
Rapid decline in oil prices
WTI type crude oil climbed to $115 per barrel after US President Donald Trump’s recent statements aimed at escalating tensions with Iran. However, after the news about the Iran-Oman protocol, there was a decline of approximately 5 dollars in prices. It was reported that this development was perceived positively in the markets as it reduced the possibility of a pause in oil shipments.
Iranian authorities emphasized that they took the last step not for control purposes, but for coordination. Kazem Gharibabadi, the country’s deputy foreign minister responsible for law and international relations, stated that ship passages in the strait should be monitored in cooperation with coastal states and in a certain order, even under normal circumstances.
Gharibabadi emphasized that the purpose of the prepared measures is not to restrict passage, and stated that the main goal here is to facilitate safe and trouble-free transportation and to improve the services offered for ships passing through the region.
Volatility in crypto assets and tech stocks
Following US President Trump’s messages on Wednesday night that harsh steps would be taken against Iran, Bitcoin and other crypto assets lost value. Currently, Bitcoin is at $66,700, down about 3 percent. A similar decline was observed in other leading crypto assets such as Ethereum.
This decline in the cryptocurrency market also manifested itself in public companies related to the sector. Coinbase and Robinhood shares also suffered losses in the 24-hour period.
Despite the sharp retreat in the digital asset markets, some of the losses were compensated in a short time after the diplomatic initiatives mentioned above. However, it was observed that the general course was still weak compared to the previous days.
In line with the latest developments, the effects of the diplomatic activity in the Middle East on both energy and crypto finance markets continue to be followed carefully.
