- Donald Trump has accused Iran of repeatedly violating the ongoing ceasefire.
- There were multiple reports about attacking ships last weekend in the Strait of Hormuz.
- The lack of direction in the US-Iran war has left investors uncertain about market trends.
US President Donald Trump has accused Iran of violating the ceasefire numerous times, suggesting the potential of another dead end in the ongoing negotiation on how to end the war between the US and Iran. Trump made the post on his Truth Social account amid persistent tensions in the Strait of Hormuz over the past weekend.
Reported Attacks in the Strait of Hormuz
The lack of a headway in the ongoing negotiations has left an air of uncertainty across the globe, particularly among ships attempting to cross the Strait of Hormuz. There were reports of attacks within the region over the past weekend, causing vessels to reverse their attempts to go across the waterway.
Several ships set sail to cross the Strait of Hormuz after Iran announced its opening last Friday. Everything changed after a UK maritime security agency reported that Iran’s Revolutionary Guards fired at one tanker.
Another report indicated that the force threatened to destroy an empty ship fleeing the Gulf, while the UK agency reported a third incident, where a vessel was hit by an unknown projectile.
The War Situation Creates Uncertainty Among Investors
The recent wave of events has caused more doubts over the possibility of an agreement between the US and Iran to end the war, with the ceasefire scheduled to end on Wednesday. The uncertainty surrounding the situation is having a direct effect on the global markets, with Oil prices, Commodities, US stocks, Futures, and crypto bearing the brunt.
For most assets, the issue is volatility, leaving investors in an uncomfortable position. Typically, most of them stay away from the market whenever it becomes difficult to predict the trend. Hence, the quick fluctuations in Oil prices have become a crucial factor in the global market ecosystem.
The War’s Effect on the Crypto Market
Like several mainstream assets, cryptocurrencies have exhibited trends that reveal the impact of the US-Iran conflict on the ecosystem. For instance, Bitcoin has remained within a tight range for several weeks. Its latest attempt at a bullish breakout following the ceasefire met a blockade over the past weekend, causing the cryptocurrency to decline 6% within three days.
Considering the global market’s behavior since the war began at the end of February, expectations are focused on the outcome of the upcoming negotiation. An agreement between the US and Iran could stabilize the markets and install relative calm across asset prices.
However, volatility may continue if the negotiation fails and Trump goes ahead with his threat of blowing up major infrastructure in Iran.
Related: US and Iran Weigh Second Round of Talks as Ceasefire Deadline Looms
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