Oil Tumbles Nearly 5% to Two-Week Low as US-Iran Peace Deal Optimism Builds

Crude oil prices dropped close to 5% on Thursday, hitting a two-week low as markets priced in a growing probability of a diplomatic breakthrough between Washington and Tehran. A successful US-Iran deal would unlock significant Iranian export capacity that has been constrained by sanctions, adding supply pressure to an already softening demand picture.

The move is a meaningful macro signal for crypto and risk assets broadly. Cheaper oil tends to ease inflation expectations, which can shift the Fed's calculus on rates — a double-edged development that historically lifts growth assets but also signals slowing global demand. Traders across commodities, equities, and digital assets will be watching whether the diplomatic momentum holds or stalls at the negotiating table.