Oil falls as Iran signals possible hormuz reopening, bitcoin holds near $86,000

Iran could reopen the Strait of Hormuz within seven days if the U.S. eases military pressure and lifts its port blockade, according to multiple reports citing a senior Iranian official.

Oil prices subsequently fell with WTI crude more than 2.5% lower at $89 a barrel, roughly 15% below its September high. Brent crude dropped below $98 a barrel.

A sustained de-escalation in the Middle East could provide a tailwind for risk assets, with lower energy prices easing inflationary pressures and concerns over further interest rate hikes.

Bitcoin is consolidating around $86,000 following Monday’s sharp rally, which took it to an intraday high of $87,300. Gold is little changed over the past 24 hours at approximately $4,336 an ounce.