Trump Rejects Iran Deal as Rising Oil Prices Threaten Crypto Market Rebound

U.S. President Donald Trump has stated that he has no plans to negotiate a deal with Iran except if the country surrenders. This comes as oil prices continue to surge amid the U.S.-Iran War, raising inflation fears and putting the crypto market at risk of a decline despite its recent rebound.

Trump Refuses To Negotiate Deal On U.S.-Iran War

In a Truth Social post, Trump said that there will be no deal with Iran except for an unconditional surrender. He suggested that this unconditional surrender would include allowing the U.S. to select a “great and acceptable leader” for the country.

“We, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before,” he added. This comes as the U.S.-Iran war enters the seventh day.

Trump’s latest statement adds uncertainty to when the war could end, with Iran already stating that it has no intentions to negotiate with the U.S. The war continues to impact the crypto market, which is now retracing after a rebound earlier in the week. As CoinGape reported, Bitcoin fell below $70,000 today amid rising oil prices.

Brent Crude Oil and WTI Rise to Two-Year Highs

Brent crude oil rose above $90 on the back of Trump’s statement and is now up over 8% on the day. This marks the highest level for this oil benchmark in the last two years.

U.S. oil prices are also rising, with the derivatives market for the light crude oil (WTI) up over 10% today, almost at $90. This is the highest level since April 2024. The WTI is now up over 55% year-to-date (YTD) and up over 36% since the U.S.-Iran war began last week.

Despite the recent rebound in Bitcoin and the broader crypto market, these crypto prices remain at risk of a large decline if the war continues for a while. JPMorgan hinted that risk assets could suffer a similar fate to that seen when the Ukraine war began in 2022. Back then, Bitcoin and stocks didn’t initially sell off until about a month after the war first began.

Iran War Could Cause Oil Prices To Rise To $150

According to a Financial Times report, Qatar has warned that the U.S.-Iran war could send oil prices to as high as $150 within the next two weeks. This came as the country’s energy minister, Saad al-Kaabi, warned that the conflict in the Middle East could “bring down the economies of the world.”

Gulf countries are already moving to shut down production, with exports slowing down due to restrictions in the Strait of Hormuz, a key oil export chokepoint. According to the Wall Street Journal, Kuwait has begun cutting production at its oil fields after running out of room to store its bottled-up crude oil.

Former U.S. Treasury Secretary Janet Yellen warned earlier this week that rising oil prices could drive inflation higher. This is a negative for Bitcoin and the broader crypto market, as it could force the Fed to keep rates steady rather than cut them further.