Market Divergence Following US-Iran Ceasefire Announcement: Oil Prices Plunged 20% at One Point, Bitcoin and Gold Both Saw Significant Rises

After the US and Iran agreed to a two-week ceasefire, the global financial markets reacted very differently. Oil prices once plummeted by about 20%, while Bitcoin, gold, and U.S. stock futures surged significantly.

Affected by tense Middle East geopolitical tensions, oil prices experienced sharp fluctuations after the conflict erupted. On February 28, during the initial phase of the conflict, USOIL crude oil prices were below $70 per barrel, but within a week, they soared to $120. Subsequent statements from various parties and infrastructure attacks further intensified oil price volatility.

From last weekend to early this week, Trump issued new threats against Iran, including plans to attack the country's power plants and bridges, causing oil prices to surge again.

Meanwhile, Trump's remarks on Tuesday local time, stating "Tonight, a civilization will perish," were particularly concerning, and this statement even led Iran to withdraw from negotiations at that time.

However, a few hours later, Trump announced on his social media platform that both sides had agreed to a two-week ceasefire, and Iran would safely open the Strait of Hormuz. He added that the U.S. received Iran's 10-point proposal, which they considered "a feasible basis for negotiations."

Trump then explained that the U.S. would help resolve traffic congestion in the Strait of Hormuz, as this move would generate huge profits. He also boldly predicted that this series of actions would usher in a "Golden Age in the Middle East."

Following the ceasefire announcement, oil prices immediately plunged. USOIL crude oil prices dropped from $117 per barrel to below $92. Although by the time of writing, prices rebounded to $96, they are still over 40% higher than before the conflict erupted.

Contrary to the bleak performance of the oil market, assets like Bitcoin, gold, and stocks generally rose. Bitcoin surged from just above $68,000 to nearly $73,000, a three-week high, before retreating to around $71,700.

As of now, Ethereum has risen nearly 7%, approaching $2,250; XRP, Solana, DOGE, and other altcoins also recorded gains of over 4%.

Gold prices, for the first time in three weeks, approached $4,900. Additionally, the S&P 500 and Nasdaq indices also experienced varying degrees of gains.

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