Key Takeaways:
Bitcoin fell below $80,000 on May 12 as Trump warned that the U.S.-Iran ceasefire is on life support.A 1.6% drop in crypto prices wiped out $232 million in long bets as bitcoin’s market cap fell to $1.61 trillion.Markets await the PPI report to see if 3.8% inflation will force further energy price pressure.Speaking to reporters shortly after receiving Iran’s proposal, which he deemed “unacceptable,” President Trump repeated the argument that Tehran is stringing the U.S. along and seems uninterested in reaching an agreement. This latest impasse in negotiations is seen as strengthening hawks in Washington who favor a return to full combat operations.
However, a return to combat would ensure the Strait of Hormuz, where traffic has slowed to a trickle since the conflict began, remains closed. As warned by the Aramco CEO, this prospect means the oil market and prices will not stabilize until at least 2027. This warning places the Trump administration and the Republican Party in a bind, as higher oil prices for the remainder of the year will likely harm their chances in the November midterms.
