Brent crude prices dropped 7% to $87 per barrel after the U.S. and Iran paused Strait of Hormuz strikes, boosting global equities and DeFi tokens ahead of Wednesday's Fed decision.

Key Points

• Brent crude fell to $87 per barrel, easing inflation concerns that previously pressured risk assets.
• The probability of a Federal Reserve interest rate hike dropped to 30.5% from 37.4% following the de-escalation.
• DeFi tokens saw significant gains, with AAVE rising 9%, LDO 9.39%, and PUMP surging 12.24% to an $800 million market cap.
• Bitcoin held steady near $65,000, while Ether outperformed, rising 0.51% to $1,963 as futures data indicated strong bullish sentiment.
• Nasdaq 100 and S&P 500 futures rose 1.36% and 0.80%, respectively, as markets reacted to the cooling geopolitical tensions.

Why it Matters

The pause in hostilities has significantly reduced immediate inflationary pressure, prompting investors to shift capital back into risk-on assets like cryptocurrencies and equities. This market repositioning suggests that global financial stability remains highly sensitive to geopolitical developments in the Middle East and upcoming central bank policy shifts.