Iran awaits the U.S. response to the Hormuz Strait proposal, the door for diplomacy is still open. #WTI #Bitcoin At least for now, it seems escalation and expanding the conflict are off the table. Oil prices just dipped below $91, and $BTC has bounced back to around $84K. U.S. stock indices also saw a slight recovery at the opening. This morning, the market might have been worried about oil prices climbing higher, but by the evening, it’s already close to breaking below $90. If the U.S. responds with signals of progress in negotiations, the market’s hope for the reopening of the Hormuz Strait could heat up quickly, driving crude oil prices to give back their premiums. We might even see $85 or lower for #WTI prices. But if peace talks hit another roadblock, oil prices will definitely surge again, October rate hike expectations will rise, and risk markets will remain under pressure. Personally, I think the downward trend in oil prices might not be super smooth, but overall, it should still head downward. After all, Trump is under a lot of pressure, with the midterm elections just a month away, and Iran is also feeling the heat. All in all, diplomatic engagement is still ongoing, which is something to look forward to. Let’s hope for some good news. Otherwise, the way risk markets climbed up is the same way they’ll tumble back down.