A 7% plunge in Brent crude following eased Iran-U.S. tensions lifted equities and crypto ahead of Wednesday’s Fed decision.
Bitcoin steadied around $65,000 as risk assets rallied after Brent crude fell 7% on reports the U.S. and Iran paused military strikes near the Strait of Hormuz. The decline in oil prices eased inflation concerns, supporting equities and decentralized finance tokens.
Prior to the drop, crude had traded near multi-month highs amid escalating geopolitical tensions. Markets now await the Federal Reserve’s policy decision Wednesday, with investors weighing the impact of lower energy costs on inflation expectations.
The pause in hostilities provided a short-term boost to risk sentiment, though crypto and equity markets remained cautious ahead of the Fed’s announcement.