Oil prices dropped sharply within minutes following the announcement, with USOIL falling by double digit percentages.
United States President Trump, together with Iran’s foreign minister, announced a significant easing of tensions, signaling that the Strait of Hormuz would finally reopen. This development had a strong effect across global financial markets, particularly on oil due to the strategic importance of the Strait.
USOIL experienced a steep decline of more than eleven percent. Before the announcement, it was trading at ninety dollars per barrel, but it quickly fell to below eighty dollars, reaching its lowest level in five weeks within minutes.
As seen in similar situations in the past, reports indicated that traders had already taken large positions shortly before the announcement became public. According to Reuters, investors placed short positions on oil worth seven hundred sixty million dollars just twenty minutes before the statement was released on Friday. Data from LSEG shows that between 12:24 GMT and 12:25 GMT, traders sold a total of 7,900 lots of Brent crude futures.
At 12:45 GMT, Iran’s foreign minister posted on X that the passage for all commercial vessels through the Strait had been fully reopened for the remainder of the ceasefire period.
There have been several comparable incidents in recent years, particularly in relation to developments in the Middle East. In one example, an account was linked to multiple trades dating back to 2024, consistently achieving a perfect success rate by predicting Israel’s military actions in the region.
While oil prices dropped significantly, most other financial assets surged. Bitcoin reached a ten week high above seventy eight thousand dollars following the de escalation. However, this upward momentum may face risks after Iran disputed several of Trump’s additional claims.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
