Markets are bracing for volatility as Iran makes stringent demands for a ceasefire.

Iran's initial demands for a ceasefire included war reparations, official control of the Strait of Hormuz, and no restrictions on ballistic missiles.

A U.S. official called these conditions “ridiculous and unrealistic,” according to the Wall Street Journal. These terms come as Washington deploys thousands more troops to the region, further fueling Tehran’s suspicion that diplomacy is merely a pretext for military escalation.

The trust gap is widening as the military is strengthened.

Iranian officials told mediators in Pakistan, Egypt, and Turkey that increased U.S. military movement further convinced them that Trump's peace proposal was just a "ploy," according to Axios .

Several squadrons of fighter jets and forces from the 82nd Airborne Division are preparing to deploy to the Middle East in the next few days.

According to The Kobeissi Letter, Iranian officials predict the fighting will last another two to three weeks, even with negotiations. Senior military adviser Mohsen Rezaei said the conflict will continue until Tehran receives full compensation for the damages it has suffered.

Oil and crypto are under pressure.

Brent crude oil prices rebounded above the $100 per barrel mark on Wednesday, after falling 11% in the previous session. At the time of writing, spot Brent crude was trading at $98.87 amid continued profit-taking.

Goldman Sachs warned that oil prices could surpass the 2008 record of $147.50 if tensions in Hormuz continue, while raising its Brent crude price forecast for 2026 to $85 from $77 previously.

Meanwhile, Ole Hansen from Saxo Bank also stated that supply constraints are emerging in many commodities such as refined fuels, natural gas, helium, and fertilizers.

Gold and silver prices also rebounded, suggesting that the earlier sell-off in precious metals was primarily driven by increased liquidation demand.

Bitcoin (BTC) traded above $71,300 on March 25, 2026, recovering after falling below $68,000 earlier in the week. Rising oil prices continue to fuel inflation concerns, prompting Goldman Sachs to push back its forecast for the Fed's next interest rate cut from June to September.

Tight monetary policy is directly impacting risky assets, and BTC has behaved like a risky asset throughout the conflict.

With Iran setting conditions that Washington has rejected and US troops continuing to be deployed, the path to de-escalating tensions remains very narrow.