Bitcoin Climbs 2.3% as Trump Rejects Iran Peace Deal

Bitcoin gained 2.3% to trade above $81,800 late Sunday after President Donald Trump publicly rejected Iran’s response to a U.S. peace proposal, sending oil prices higher and sparking investor concern over a wider conflict.

"I don't like it — TOTALLY UNACCEPTABLE!" Mr. Trump posted on Truth Social on May 10, dismissing the Iranian offer that called for an end to the conflict on all fronts and the lifting of a U.S. blockade on its ports.

The move added to market volatility, with Brent crude futures jumping 3.7% to $105 a barrel. U.S. stock futures pointed to a weaker open, with S&P 500 and Nasdaq 100 futures both down approximately 0.4%, according to data from the Asian trading session. The 10-year U.S. Treasury yield rose to 4.39% as investors weighed the risk of persistent inflation.

The reaction highlights Bitcoin's growing use as a hedge against geopolitical instability, with its price diverging from risk assets like equities. As diplomatic efforts falter and military activity continues in the Strait of Hormuz, traders are watching if Bitcoin can break its next resistance level and how traditional markets will price in the heightened risk of supply chain disruptions.

Geopolitical Tensions Escalate

President Trump’s sharp dismissal dampened hopes for a quick resolution to the conflict that has destabilized global energy markets. Iran’s proposal, delivered via Pakistani mediators, sought a permanent end to the war, a ceasefire in Lebanon, and the security of shipping through the Strait of Hormuz. Tehran’s demands also included the full removal of U.S. sanctions and the unfreezing of its assets, according to reports from state-run media.

The diplomatic friction comes amid continued military confrontations. The U.S. has been enforcing a blockade of Iranian ports, turning away 58 vessels and disabling at least four, including two oil tankers fired upon by U.S. forces on Friday. In response, Iran’s Revolutionary Guards have threatened to attack U.S. sites in the region. The shaky ceasefire has also been tested by drone attacks blamed on Iran by the United Arab Emirates and Kuwait.

Markets Price in Uncertainty

The breakdown in peace talks sent immediate ripples through global markets. "Trump's comment has dampened hopes of an immediate diplomatic breakthrough and has once again brought the broader risks of supply disruption in global energy markets back in focus," R Ponmudi, chief executive of Enrich Money, told Reuters.

The flight to safety was evident as the U.S. dollar strengthened against major peers. In equities, foreign institutional investors offloaded Indian shares worth Rs 4,111 crore on Friday, continuing a trend of net selling. The market jitters come as traders await April inflation data, which is expected to show the economic impact of the war that began on February 28.

This article is for informational purposes only and does not constitute investment advice.