Oil and risk assets saw sharp reversals Thursday as easing concerns around a key shipping route helped stabilize sentiment after a volatile start to the session.
U.S. crude prices tumbled shortly after an earlier surge, dropping nearly $6 per barrel at one point. The pullback followed reports that Iran is working with Oman on a framework to coordinate vessel traffic through the Strait of Hormuz, a critical artery for global oil flows.
Equity markets also rebounded on the development. The Nasdaq, which had fallen as much as 2% earlier in the day, recovered most of its losses as fears of supply disruptions began to ease.
WTI crude, which had climbed toward $115 per barrel after President Donald Trump signaled a more aggressive stance toward Iran, reversed course and declined by roughly $5 on the shipping update.
Crypto markets moved in tandem with broader risk sentiment. Bitcoin slipped to around $66,700, down roughly 3% over the past 24 hours, while ether traded near $2,060 with similar losses. Although prices pared some intraday declines, digital assets remained under pressure.
Iranian officials characterized the proposed arrangement as a coordination effort rather than an attempt to exert control. Deputy Foreign Minister Kazem Gharibabadi said that even under normal conditions, maritime traffic through the strait should be managed in cooperation with coastal states such as Iran and Oman to enhance safety. He emphasized that the initiative is designed to facilitate smoother transit and improve services for vessels, not to restrict access.
The developments follow comments from Trump late Wednesday, when he warned that the U.S. would act “extremely hard” against Iran in the coming weeks and suggested that the Strait of Hormuz would “open naturally” once hostilities subside.
Bitcoin initially declined after those remarks and remains about 2% lower over the past day, broadly in line with crypto-linked equities such as Coinbase and Robinhood, which have also faced selling pressure.
