Oil prices fell as the odds improved for a US-Iran nuclear deal, while tariff angst rattled American equities futures and Bitcoin as investors navigate mounting uncertainty over President Donald Trump's move to increase global import duties on trading partners.
Bitcoin slid in Asian trade on Monday, slumping as much as 5.23 per cent to below $64,416.18, but clawed back some of the lost ground to trade 2.58 per cent lower at $65,869.66 at 12.08pm UAE time, CoinMarketCap data showed.
Ethereum slumped 5.53 per cent to $1,862.92, according to CoinGecko data.
Bitcoin this month wiped out the remaining gains it accumulated after Mr Trump was re-elected in November 2024. Hopes around the US leader's crypto-friendly administration sent Bitcoin to a record price above $126,000, but a massive sell-off since then has left the market reeling. The global cryptocurrency market has lost more than $2 trillion in value since hitting the peak of $4.379 trillion in early October.
Stocks and dollar
The dollar and US stocks futures also slid on Monday, a day before Mr Trump’s new global tariff is set to take effect. Policy uncertainty has dampened investor sentiment towards American assets, with futures on the US benchmark S&P 500 dropping 0.6 per cent and Nasdaq 100 futures sliding 0.73 per cent.
The Bloomberg Dollar Spot Index fell 0.2 per cent, while the Japanese yen, Swiss franc and the euro all gained against the dollar. Gold and silver, on the other hand, rose as investors hedged their bets, factoring in a higher risk premium for US assets.
“Global trade uncertainty is back as an issue for investors and that’s bad news for US assets,” said Garfield Reynolds, a Bloomberg markets analyst. “The dollar’s slide this morning has the potential to extend and the S&P 500’s underperformance relative to peers will become more entrenched as investors price in the impact.”
The US Supreme Court decision to reject Mr Trump's initial tariffs on global trading partners is likely to benefit China and India, both of which were hit the hardest by the levies. India has agreed on a bilateral tariff deal with the US, while China, which opted to hit America with its own tariffs, is still negotiating a trade deal.
Hong Kong-listed Chinese stocks led the gain in Asia on Monday, with Hang Seng Index gaining more than 2.18 per cent. The mainland equity markets were closed for the holidays.
The US court ruling also comes weeks before Mr Trump’s March 31 visit to China, where he aims to push the world’s second-largest economy to agree to a trade deal. On Sunday, a senior US official said trade deals the US has already negotiated, including those with Japan, the EU and South Korea, will remain in place despite the Supreme Court ruling.
“We want them to understand these deals are going to be good deals,” US trade representative Jamieson Greer told CBS. “We’re going to stand by them. We expect our partners to stand by them.”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the tariff saga was a mess and “no one knows what’s next”.
“The White House said that the bilateral deals that have been agreed remain valid, but no one understands how trade partners can be imposed an additional 15 per cent and still keep their original trade agreement,” she said. “Meanwhile, the new 15 per cent tariff itself cannot last forever, given that the legal provisions President Trump invoked only allow for temporary duties.”
Oil slides
Crude prices on Monday also dropped, despite Mr Trump saying he is considering limited strikes on Iran to force Tehran to agree to a deal on its nuclear programme.
Brent, the benchmark for two thirds of the world's oil, slipped 1.28 per cent to $70.84 a barrel, while West Texas Intermediate, the gauge that tracks US crude, retreated 1.35 per cent to $65.58 per barrel.
The US and Iran are in a tense stand-off in the Middle East, with Washington demanding Tehran quickly reach a nuclear deal. Mr Trump last week set a 10-day deadline for Tehran to strike a deal – warning that “otherwise bad things” will happen. The US is building up its military presence in the Middle East. Tehran has threatened to retaliate against any strike.
Iran and the US are set to hold a third round of nuclear talks on Thursday in Geneva, Oman's Foreign Minister Badr Al Busaidi said on Sunday.
