“Let the oil flow!”
Options markets reflected the sharp improvement in risk sentiment, with BTC and ETH front-end volatility term structures normalising after the US-Iran peace deal reduced geopolitical tail risk.
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In Today’s Note
Crypto rebounded after the US-Iran peace deal, with BTC moving from $64K to nearly $66K, ETH trading back above $1,700, and spot Bitcoin ETFs breaking their outflow streak.
Oil prices fell sharply, with crude down close to 6% over the past 24 hours after Trump confirmed the deal and said the Strait of Hormuz would fully reopen.
Options markets showed less downside demand, with BTC and ETH term structures normalising and put-call skew recovering from the deeply negative levels seen earlier in June.
Market Snapshot: Overnight Moves
Macro & Markets
Optimism that a diplomatic route out of the US-Iran war was on the cards helped send sentiment in the riskier corners of the market higher, pushing up US equities in Friday’s session.
In fact, late last night President Trump confirmed the breaking news that after nearly four months of conflict, the US and Iran have reached a more permanent peace deal.