Brent crude fell about 7% as the United States and Iran paused strikes around the Strait of Hormuz, easing immediate geopolitical tensions and lifting risk sentiment across global markets. Equities and decentralized finance (DeFi) tokens advanced, while bitcoin held near $65,000 ahead of a closely watched Federal Reserve policy decision on Wednesday.
Oil slides as tensions ease near key shipping chokepoint
The sharp drop in Brent, the international oil benchmark, followed reports that Washington and Tehran paused military strikes around the Strait of Hormuz, a critical corridor for global crude shipments. Lower energy prices supported broader risk assets, with investors rotating back into equities on hopes that supply risks would recede.
Crypto markets firm; DeFi tokens gain
Improved risk appetite extended to digital assets. A basket of DeFi-linked tokens advanced as sentiment stabilized, aided by the pullback in oil and a softer macro backdrop. Bitcoin traded steadily near $65,000, with market participants citing light positioning ahead of midweek macro catalysts. DeFi tokens, which power decentralized trading, lending, and yield protocols, often move with broader risk conditions and liquidity expectations.
Fed decision in focus
Attention now turns to the Federal Reserve’s policy announcement on Wednesday. Investors will parse the rate decision and forward guidance for clues on the path of interest rates and liquidity—key inputs for both equities and crypto. A more accommodative outlook could reinforce the current risk-on tone, while a hawkish surprise may inject fresh volatility across assets.