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The message from Iran may have been the most important development of the night. Tehran indicates it supports the message sent by the American voter against war. Now, a new possibility lies ahead. If diplomatic channels open to ease U.S.-Iran tensions, the geopolitical risk premium on oil could recede. Lower energy costs would alleviate inflationary pressures. This could create a new landscape for the Fed’s monetary policy, global liquidity, and risk appetite. Normalization in oil markets has the potential to serve as a key catalyst for renewed risk appetite in crypto.

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