Oil prices experienced a decline as optimism increased regarding a potential nuclear deal between the United States and Iran. This development coincided with rising concerns over tariffs that impacted American equities futures and the cryptocurrency market, particularly Bitcoin. Investors are grappling with the implications of President Donald Trump’s decision to raise import duties on trading partners.
During Asian trading hours on Monday, Bitcoin saw significant losses, plummeting by as much as 5.23% to dip below $64,416.18. However, it managed to recover slightly, settling at $65,869.66, reflecting a 2.58% decrease by around 12:08 PM UAE time. Similarly, Ethereum faced a downturn, dropping 5.53% to $1,862.92. The cryptocurrency market, which previously thrived under Trump’s crypto-friendly policies following his re-election in November 2024, has since lost substantial ground. Bitcoin, which soared to an all-time high surpassing $126,000, recently wiped out its gains, contributing to a staggering $2 trillion decline in global cryptocurrency market value since its peak in early October.
In the realm of equities and currency, the dollar and US stock futures also followed suit, facing declines a day before Trump’s new global tariff is set to go into effect. The US benchmark S&P 500 futures fell by 0.6%, and the Nasdaq 100 futures dropped 0.73%. The Bloomberg Dollar Spot Index decreased by 0.2%, as the Japanese yen, Swiss franc, and euro gained against the dollar. In contrast, gold and silver prices increased, as investors sought to hedge against potential risks associated with US assets.
Garfield Reynolds, a Bloomberg markets analyst, noted the resurgence of uncertainty around global trade, which negatively impacts American assets. Furthermore, he indicated that the dollar’s decline could persist, leading to a deeper underperformance of the S&P 500 compared to its global peers.
The recent US Supreme Court ruling against Trump’s initial tariffs on global trading partners could potentially benefit nations like China and India, who faced the brunt of the levies. India has recently negotiated a bilateral tariff agreement with the US, while China is still in talks regarding a trade deal. Asian markets reflected this optimism, with the Hong Kong-listed stocks driving a rise in the Hang Seng Index, which increased by over 2.18%. Meanwhile, the mainland equity markets remained closed for holidays.
In anticipation of Trump’s upcoming visit to China on March 31, US officials confirmed that existing trade agreements with countries such as Japan, the EU, and South Korea will remain intact, despite the court ruling. US Trade Representative Jamieson Greer emphasized that these agreements are “good deals,” reinforcing the expectation of compliance from partner nations.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, commented on the complexities surrounding the tariff situation, questioning the feasibility of imposing additional duties while maintaining pre-existing agreements. She highlighted the temporary nature of the new tariff, wondering about the implications moving forward.
On the front of crude oil prices, a decline was noted despite Trump’s consideration of limited military action against Iran to expedite a nuclear deal. Brent crude, a global benchmark, fell 1.28% to $70.84 a barrel, while West Texas Intermediate, a key indicator for US crude, decreased by 1.35% to $65.58 per barrel.
The ongoing tensions between the US and Iran have heightened in recent weeks, as Washington insists on a swift resolution to the nuclear discussions. Trump has issued a strict 10-day ultimatum for Iran to reach an agreement, warning of severe consequences should the negotiations fail. As military activity intensifies in the Middle East, Tehran has also threatened potential retaliation against any military actions.
Looking ahead, both nations are scheduled to engage in a third round of nuclear talks in Geneva on Thursday, as indicated by Oman’s Foreign Minister Badr Al Busaidi.
