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Markets React Positively to U.S.-Iran Developments, While Crypto Struggles
By Krisztian Sandor, Helene Braun|Edited by Stephen AlpherUpdated May 28, 2026, 3:16 p.m. Published May 28, 2026, 3:10 p.m. 2 min readMake preferred on
Donald Trump points at the audience during a press conference at the White House. (Alex Wong/Getty Images)Key Takeaways:
- Stock and bond markets surged, and oil prices dropped following news of a draft deal and recent U.S. airstrikes near the Strait of Hormuz, yet bitcoin continues to decline.
- The PCE index, the Federal Reserve's favored measure of inflation, increased to 3.8% in April, marking its highest level since 2023, adding pressure on policymakers facing ongoing inflation challenges.
According to a report from Axios, U.S. and Iranian representatives have put together a draft 60-day memorandum of understanding aimed at extending the ceasefire and initiating discussions regarding Iran's nuclear ambitions, although President Donald Trump has yet to give his approval.
This news follows U.S. airstrikes on an Iranian military site situated near the strategically important Strait of Hormuz, an area that has captured the attention of macro traders recently.
Despite the numerous supposed peace agreements in the Middle East, traders reacted positively to the Axios report, pushing stocks and bonds higher while oil prices fell. The Nasdaq, which had been down earlier, is now up 0.6%, while WTI crude has dropped below $90 per barrel.
In contrast, the cryptocurrency market remains under significant pressure, with bitcoin BTC$72,792.53 unable to sustain any upward movement, now falling back below 73,000, representing a 2.7% decrease in the last 24 hours.
Following the Axios report, Treasury Secretary Scott Bessent cautioned that the U.S. would "not tolerate" any efforts to impose tolls on shipping through the Strait of Hormuz, pledging strong sanctions against those who disrupt commercial shipping in this vital route. He stated, "Oman, in particular, should be aware that the U.S. Treasury will aggressively target any parties involved - whether directly or indirectly - in facilitating tolls for the Strait, and any collaborators will face penalties."
Fed's Key Inflation Metric Reaches Highest Point Since 2023
The latest inflation figures released under Federal Reserve Chair Kevin Warsh indicate that price pressures intensified in April, with the Personal Consumption Expenditure Index (PCE), the Fed's chosen inflation metric, climbing to a nearly three-year high of 3.8% year-on-year, up from 2.8% in February.
Olu Sonola, head of U.S. economics at Fitch Ratings, commented, "The inflation situation is becoming increasingly troubling for the Fed. This issue extends beyond just headline inflation; core inflation is also trending negatively. Price pressures are likely to persist in the coming months, and while the Fed cannot resolve a supply shock, it cannot overlook one that contributes to underlying inflation. The Fed finds itself in a difficult position — and the pressure is clearly mounting."
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Investors Shift Focus as Inflation Concerns Ease, According to JPMorgan
By Helene Braun, Will Canny, AI Boost|Edited by Stephen Alpher2 hours agoInvestors are moving away from bitcoin and gold, potentially anticipating a resolution to ongoing Middle East conflicts.
Key Points:
- JPMorgan notes that the previous “debasement trade,” which focused on bitcoin and gold during the pandemic, is losing momentum, as evidenced by recent withdrawals from bitcoin and gold ETFs and a decrease in institutional futures positions reflecting a more general retreat from macro hedges.
- The report suggested that investors might be positioning themselves in anticipation of a U.S.-Iran peace agreement.