✨A Turning Point in Geopolitical Tension


How Ceasefire Signals Affect Markets?
#US-IranTalksVSTroopBuildup
#CryptoMarketRecovery

A critical threshold was crossed this week in the 48-day conflict in the Middle East. It was announced that the parties are close to a framework agreement including a long-term freeze on the nuclear program and the return of enriched material. It is emphasized that military operations may continue if an agreement cannot be reached.

In parallel, a 10-day ceasefire was declared between two neighboring countries in the eastern Mediterranean. This step increased hopes of reopening critical energy corridors that have been closed for weeks.

Markets reacted immediately:
- US stock indices turned positive in the afternoon following the ceasefire announcement.
- Brent crude oil rose nearly 4% to the $99 range due to supply concerns.
- The deployment of additional naval and amphibious elements to the region keeps the risk premium high.

Attempts to limit war powers in Congress were narrowly rejected in both the House of Representatives and the Senate. This means that the current military position will continue, at least in the short term.

Geopolitical de-escalation supports risk appetite in the short term (reduced volatility in BTC and ETH), but stickiness in energy prices keeps inflation expectations alive. The situation in the Strait of Hormuz will be the most important catalyst for oil and therefore the Fed's path next week.

Note: This post is not investment advice. DYOR.
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✨The Last 24 Hours at the Ceasefire Table: Oil, Markets, and the 48-Day War

Recent briefings from Washington indicate that a comprehensive agreement with Iran is "very close," involving a 20-year freeze on its nuclear program and the return of enriched material. The administration has made it clear that attacks could resume if an agreement is not reached.

At the same time, a 10-day ceasefire was declared on the Israel-Lebanon line. The meeting between the two sides in Washington for the first time in 34 years immediately boosted risk appetite in the markets; the S&P 500 and Nasdaq extended their gains in the afternoon.

The oil front, however, is contradictory: While the White House argues that prices have fallen, Brent rose nearly 4% on Thursday to $99.4. The market is pricing in a supply shock due to the US blockade of the Strait of Hormuz and the deployment of 10,000 additional troops to the region.

The situation is different in Congress: The House of Representatives passed the bill limiting war powers by a single vote (214-213), and the Senate rejected it by a vote of 47-52. The war is now in its 48th day since February 28th without congressional approval.

The Pentagon's message is harsh: "This is not a fair fight, we are watching you." Israel, meanwhile, is demanding a buffer zone in southern Lebanon in the event of a ceasefire.

🧐 Both diplomacy and deterrence are being played out simultaneously. If an agreement is reached, the Strait of Hormuz will open, oil prices will ease, and risky assets will be relieved. If not, the end of the ceasefire on April 22nd could trigger a new escalation.
#US-IranTalksVSTroopBuildup
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