Oil Slides as JD Vance Pushes Iran Peace Talks. Why Isn't Bitcoin Rallying?
Oil has dropped about 21% this month as Vice President JD Vance pushes for Iran peace talks, but Bitcoin has not followed suit.
Vance wrote to Mohsen Rezaei, who runs Iran’s top security body, the WSJ reported, with Qatari mediators delivering the letter.
Its core demand was clear: Iran must not get a nuclear weapon. Vance offered to meet, possibly in Istanbul or Doha, Gulf News reported.
Tehran hit back, calling the reports baseless and accusing the US of trying to talk oil prices down, Seoul Economic Daily reported.
Brent crude jumped nearly 3% on Wednesday as the diplomatic tension played out in the markets.
Policy Shifts
Gasoline drove more than half of September’s US price rises, but Tuesday ended hopes that cheaper fuel would stop the Federal Reserve from raising rates.
October prices rose 0.4%, beating forecasts. Rate futures now price no chance of a pause, with 88.8% odds of a quarter-point hike.
Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take.
Market Reaction
Bitcoin did jump at first, passing $80,000 after oil fell 12% on Nov. 4, but by Monday it had sunk to about $73,600.
The Fed decides on Dec. 9, and until then, Bitcoin traders are watching two things at once: Iran’s next move and America’s prices.
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