Nasdaq Recovers as Iran-Oman Strait of Hormuz Deal Eases Oil Market Fears

Global markets stabilized Thursday after the Nasdaq nearly wiped out an early 2% decline following reports that Iran is working with Oman on a traffic management protocol for the Strait of Hormuz. The development calmed investor fears over potential disruptions to one of the world's most critical oil shipping lanes.

West Texas Intermediate crude oil, which had spiked to nearly $115 per barrel after President Trump pledged to escalate military pressure on Iran, dropped roughly $5 once the news broke. The sharp reversal reflected how closely energy markets are tracking geopolitical developments in the region.

Cryptocurrency markets also pared losses in response, though digital assets remained under significant pressure. Bitcoin traded around $66,700, down approximately 3% over the past 24 hours, while Ethereum held near $2,060, posting a similar decline. Crypto-linked equities including Coinbase and Robinhood moved lower in tandem, reflecting the broader risk-off sentiment that has gripped financial markets.

Iranian Deputy Foreign Minister Kazem Gharibabadi sought to frame the proposed protocol as a safety coordination measure rather than an attempt to restrict maritime passage. He argued that vessel traffic through the strait should already be monitored and coordinated with coastal nations like Iran and Oman under standard international practice. Gharibabadi emphasized that the initiative is designed to improve navigation services and support the safe and efficient movement of ships through the waterway, not to create barriers.

The diplomatic signal came just a day after Trump warned that Iran would face severe consequences in the weeks ahead and suggested the strait would reopen freely once hostilities ceased. His remarks had already rattled risk assets before Thursday's partial recovery, underscoring how sensitive global markets have become to any escalation or de-escalation in U.S.-Iran tensions.