Oil sinks 20% after U.S.-Iran truce; Bitcoin, gold, stocks rise

Oil fell about 20% after the United States and Iran agreed to a two-week cease-fire that includes plans to safely reopen the Strait of Hormuz. Bitcoin jumped toward $73,000, gold approached $4,900 and S&P 500 futures advanced more than 2.5%.

U.S. benchmark crude dropped from roughly $117 a barrel to below $92 before stabilizing near $95. The slide followed weeks of price swings tied to strikes and threats that began on February 28, when crude climbed from under $70 to about $120 in roughly a week. Even after the decline, prices remained about 40% above pre-conflict levels.

Bitcoin rallied from just over $68,000 to almost $73,000 before easing. Ethereum gained nearly 7% to trade near $2,250, while XRP, Solana and Dogecoin were up more than 4%. Gold rose from around $4,650 to near $4,900, its highest level in three weeks.

Equity markets strengthened on the de-escalation. S&P 500 futures rose more than 2.5%, putting the index close to a record high ahead of the U.S. open.

Announcing the pause on his social platform, Donald Trump wrote that both sides had agreed to a two-week cease-fire and that Iran would “safely open the Strait of Hormuz.” He wrote that the United States had received a 10-point proposal from Iran, calling it “a workable basis on which to negotiate,” and added, “Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalized and consummated.”

He also wrote that the United States will be “helping with the traffic buildup in the Strait of Hormuz” and asserted that “big money will be made.” In a separate message, he predicted a “Golden Age of the Middle East.”

Before the announcement, remarks from Trump about potential strikes on Iranian power plants and bridges had coincided with another upswing in crude. An earlier message warning that “a whole civilization will die tonight” preceded a pause in talks, before the truce was announced. The agreement highlighted the Strait of Hormuz, through which a large share of the world’s seaborne oil flows.

He indicated the two-week window is meant to let negotiators work toward a final deal.