ME News reports that on May 26 (UTC+8), while global markets continue to trade on optimistic expectations of a potential U.S.-Iran agreement, renewed military clashes near the Strait of Hormuz indicate that the current Middle East situation remains fundamentally in a phase of “negotiating while maneuvering and applying pressure.” The U.S. military confirmed it conducted “defensive strikes” against Iranian missile facilities and mine-laying vessels, while Iran accused the U.S. of violating the ceasefire agreement, revealing that the so-called peace framework is still far from achieving genuine stability. The core market focus remains whether the Strait of Hormuz can truly resume normal operations. Although multiple media outlets have begun disclosing draft details—including resuming navigation within 30 days, easing restrictions on Iranian oil exports, partially unfreezing overseas assets, and extending the ceasefire by 60 days—Iran and the U.S. have yet to fully align on nuclear enrichment, sanctions relief, and control of the strait. This explains why market sentiment toward a peace deal is showing clear fatigue, even exhibiting “boy who cried wolf”-like reactions. In terms of asset performance, oil prices initially plunged sharply before rebounding, while U.S. Treasury yields rose again after a drop during Asian trading, indicating that capital has briefly bet on de-escalation but remains highly vigilant regarding Middle East risks and global inflationary pressures. Particularly if the Strait of Hormuz fails to fully restore normal shipping, energy and supply chain constraints will continue to limit the policy space of global central banks. A deeper issue is that markets are increasingly accepting one reality—even if hostilities eventually ease, the high-interest-rate environment may not end quickly. Recent hawkish comments from Federal Reserve and European Central Bank officials, combined with market repricing of rate hike expectations, suggest global capital no longer fully trusts that “central banks will always rescue markets.” In the crypto market, BTC has recently remained range-bound. According to liquidation heat maps, significant short liquidity accumulates near $78,000–$78,200, while clear long liquidation zones form near $75,500 and $74,200. This indicates the current market structure remains heavily leveraged and characterized by prolonged tug-of-war dynamics, with capital yet to form a clear directional consensus. Until macroeconomic uncertainty is resolved, the crypto market will continue to function primarily as a highly sensitive barometer for global liquidity and risk appetite rather than generating independent trends. Especially as markets begin to question whether policy can still fully stabilize markets, the era of high volatility may have only just begun. (Source: BlockBeats)
Bitunix Analyst: Hormuz Conflict Highlights Lingering Uncertainty in Global Markets
KuCoinFlashShare
Summary
On May 26 (UTC+8), renewed clashes in the Strait of Hormuz saw the U.S. strike Iranian missile sites and mine-laying vessels, with Iran accusing the U.S. of violating ceasefire terms. Despite ongoing negotiations, unresolved issues such as nuclear enrichment and sanctions continue to weigh on markets. Oil prices rebounded after a sharp decline, while U.S. Treasury yields rose, reflecting concerns over inflation and energy supplies. On-chain data shows Bitcoin remains in consolidation, with significant liquidations across both long and short positions. The Fear & Greed Index indicates rising uncertainty, as traders question central banks’ ability to stabilize markets, signaling potential for increased volatility ahead.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.