Markets swung back toward recovery on Thursday as easing concerns over a key النفط shipping route helped stabilize sentiment after an earlier bout of volatility.
U.S. crude prices, which had surged overnight, reversed sharply—falling nearly $6 per barrel at one point. The drop came after reports that Iran is working with Oman on a plan to coordinate ship traffic through the Strait of Hormuz, a vital artery for global oil supply.
Equities followed suit. The Nasdaq, initially down around 2%, erased most of its losses as fears of disruptions to energy flows began to ease.
WTI crude had climbed close to $115 per barrel after President Donald Trump signaled a more aggressive stance toward Iran, but later retreated, shedding roughly $5 following the shipping update.
Crypto markets reflected the shifting risk tone. Bitcoin traded near $66,700, down about 3% over the past 24 hours, while ether hovered around $2,060 with similar declines. Both assets pared earlier losses but remained in negative territory.
Iranian officials framed the proposed arrangement as a coordination effort rather than an attempt to control the strait. Deputy Foreign Minister Kazem Gharibabadi said maritime traffic should be managed in cooperation with coastal states like Iran and Oman to ensure safety. He emphasized that the initiative is meant to facilitate smoother passage and improve services, not restrict access.
The development follows remarks from Trump late Wednesday, when he warned that the U.S. would respond “extremely hard” to Iran in the coming weeks and suggested the Strait of Hormuz would “open naturally” once tensions subside.
Bitcoin initially fell after those comments and continues to trade roughly 2% lower over the past day, broadly mirroring declines in crypto-related stocks such as Coinbase and Robinhood.
