Traditional markets jumped after Axios reported that US and Iranian negotiators have drafted a 60-day memorandum of understanding to extend their ceasefire. Stocks climbed, bonds rallied, and oil prices dropped.
Bitcoin, however, apparently didn’t get the memo. While legacy finance celebrated the prospect of de-escalation, BTC has been hovering below $73,000, seemingly indifferent to the diplomatic progress that sent equities higher.
What’s in the deal
The draft MOU, reported on May 23-24, goes well beyond a simple “stop shooting” agreement. It includes provisions for reopening the Strait of Hormuz without tolls, allowing Iran to sell oil freely on international markets, and initiating formal discussions on Iran’s nuclear program.
For context, the Strait of Hormuz is the narrow waterway through which roughly a fifth of the world’s oil supply passes daily. Reopening it toll-free explains why oil prices fell on the news.
