Oil just got a lot cheaper, and markets across Asia are waking up in a good mood because of it.
WTI crude dropped more than $4 per barrel after President Donald Trump indicated that US-Iran peace talks were progressing in an orderly fashion. Asia-Pacific equities are expected to open higher, and crypto is along for the ride, with Bitcoin approaching $82,000.
What’s driving the oil drop
The Strait of Hormuz is the bottleneck through which roughly 20% of the world’s oil trade flows. When tensions flare around that narrow waterway, oil prices spike. When diplomacy makes progress, they fall.
US and Iranian negotiating teams have been engaged in discussions since early 2025, with mediators from Pakistan and Qatar facilitating the process. Recent talks were held in Doha, building on earlier rounds in Islamabad. The core issues on the table include Iran’s enriched uranium stockpile and navigation rights within the Strait of Hormuz, with both sides reportedly working toward a framework within a 60-day window.
