US-Iran Talks Stall as Crypto, Stocks, and Oil Markets React

• US oil prices neared $97 as US-Iran talks and Hormuz disruption pressured markets.
• Brent climbed above $107 while WTI reached $96.52 as supply risks stayed in focus.
• Crypto stocks fell as Coinbase, Circle, and Galaxy Digital declined during the session.

US oil prices rise toward $97 per barrel as stalled US-Iran peace talks and Strait of Hormuz disruption weigh on markets. The pressure lifted crude prices, weakened crypto-linked stocks, and kept investors cautious across major assets on Monday.

The move came as investors grew cautious about the outlook for U.S.-Iran negotiations. The disruption around the Strait of Hormuz also stayed in focus because the route is central to global oil flows.

US-Iran Talks Stall as Strait of Hormuz Oil Risks Grow

According to a Wall Street Journal report, Iran proposed halting attacks on ships in the strait. In return, Tehran sought a full end to the war, the lifting of the U.S. naval blockade, and a delay in nuclear talks.

Over the weekend, President Donald Trump canceled a planned trip by his top envoys to Pakistan. However, Iran said it would not negotiate while facing threats. 

The U.S. and Iran have mostly observed a ceasefire since early April. However, shipping blockades by both sides have cut daily transits through the Strait of Hormuz to near zero.

The supply shock has affected crude, fuel, natural gas, and fertilizer flows. It has also raised concerns that inflation pressure could return if the disruption continues.

Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc., said a peace deal remained unlikely in the near term. He said the U.S. was still focused on Iran relinquishing its nuclear capabilities. 

Kissler added that higher crude prices were being placed further out into the futures curve. He said supplies looked set to remain tighter for longer.

How Oil Rally Pressures Bitcoin, Crypto Stocks, and Equities

Oil prices continued to rise during the session. Brent crude, the global benchmark, climbed more than 3% to $107 per barrel. However, West Texas Intermediate crude gained 2.25% to $96.52. 

Pressure also reached stocks in morning trading. The Nasdaq edged 0.3% lower after pulling back from recent record highs. The S&P 500 was flat ahead of a major earnings week. The schedule includes Mag7 firms such as Alphabet, Meta, Microsoft, and Apple.

Bitcoin also moved lower during the broader risk pullback. The largest cryptocurrency fell below $77,000 after its move toward $80,000 failed to hold.

Crypto-linked stocks also moved lower. Coinbase stock fell 1.5%, while Circle, the issuer of the USDC stablecoin, dropped 3.5%. However, Galaxy Digital stock slid nearly 6%.

Bitcoin also struggled to build momentum despite strong institutional demand. Bitfinex analysts said short-term Bitcoin holders in profit were selling into strength. They said this selling offset fresh demand from ETF buyers and Strategy.

The analysts said the near-term path of least resistance was likely consolidation or a pullback toward the $75,000 region. They added that Bitcoin needed a decisive break above $80,000 to confirm a more durable bullish regime.

Related: Trump’s Iran Security Meeting in Focus, What It Means for Global Markets and Bitcoin