Oil Prices Fall 5% as US-Iran Deal Talks Simmer, WTI Hits $92

Oil prices took a dive, with Brent crude dropping 5.2% to $98.12 per barrel and West Texas Intermediate (WTI) sitting near $92. This comes on the heels of potential negotiations between the US and Iran. Despite talks, President Trump isn't rushing. The blockade of the Strait of Hormuz will stay until a formal agreement is drafted.

The conflict began in February, significantly affecting Persian Gulf oil production. Millions of barrels of crude supply have been disrupted. The double blockade, by both Tehran and Washington, has created a logistical nightmare in a region responsible for a fifth of global oil and LNG supplies. If these waters reopen, energy importers like China, Japan, and South Korea could breathe a sigh of relief.

Kevin Hassett, Trump's chief economic adviser, anticipates a drop in energy prices upon a deal's completion. This could open up room for the Federal Reserve to cut rates. "Energy prices, as soon as there’s a deal, will plummet," Hassett said. Domestic political pressure mounts on Trump to resolve this, especially with fuel prices climbing to their highest since 2022.

So, what does this mean for crypto? Lower energy prices might cut mining costs, potentially boosting profits for mining operations. But, until then, the market remains in suspense. Ship it to testnet first. Always.