Oil prices dropped sharply late April 7 while Bitcoin climbed back toward $70,000, as markets reacted to signs that a last-minute diplomatic breakthrough between the US and Iran may be close.
Reports from CNN citing a regional source said “some good news is expected from both sides soon,” with expectations that a deal could be finalized before President Donald Trump’s deadline expires. The shift in tone comes just hours after markets braced for potential escalation in the Middle East.
Bitcoin rebounded to around $69,900, recovering intraday losses, while oil pulled back from earlier highs as traders priced in a lower risk of supply disruption.
Trump’s Deadline Pushes Markets to the Edge
Earlier in the day, Trump imposed a hard deadline of 8 p.m. ET (midnight GMT) for Iran to agree to a US proposal that includes reopening the Strait of Hormuz.
He warned that failure to comply would trigger large-scale strikes on Iran’s infrastructure, including power plants and transport networks.
The rhetoric escalated quickly. Trump said a “whole civilization will die tonight” if no deal is reached, while US and Israeli strikes intensified across Iranian targets ahead of the deadline.
Donald Trump’s Post on ‘Destroying Iranian Civilization’ Iran responded with threats of regional retaliation and urged civilians to form human chains around critical infrastructure.
Markets reacted in real time. Oil surged on fears of prolonged disruption to global supply routes, while risk assets, including crypto, saw volatility. Now, on reports of positive diplomatic developments, oil price has sharply dropped.
Crude Oil Price Drops on Potential De-Escalation in the Iran War. Source: TradingViewPakistan Mediation and Last-Minute Deal Signals
Diplomacy accelerated in the final hours. Pakistan, acting as a key intermediary, formally requested a two-week extension to allow negotiations to continue.
Prime Minister Shehbaz Sharif urged both sides to observe a temporary ceasefire and reopen the Strait of Hormuz as a goodwill measure.
The White House confirmed Trump was reviewing the proposal. At the same time, US officials said negotiations were ongoing, and Iran signaled it was considering the extension.
Now, with reports pointing to a possible agreement “tonight,” markets are shifting from panic to cautious optimism. The drop in oil and Bitcoin’s rebound suggest traders are positioning for de-escalation rather than immediate conflict.
