Trump's Iran MOU Reversal Sparks Global Market Chaos

President Trump's announcement that the US-Iran Memorandum of Understanding is 'over' sent shockwaves through global markets on July 8. The agreement, barely three weeks old, was signed remotely on June 17 with Pakistan serving as mediator between Washington and Tehran.

The MOU aimed to establish a 60-day window for negotiating a permanent agreement, including provisions for reopening the Strait of Hormuz and potential sanctions relief. However, escalating attacks on commercial vessels near the Strait had already made the diplomatic framework look aspirational rather than operational.

Oil prices surged roughly 5% to $78 per barrel as investors scrambled for safer ground, with European stocks dropping 1.1%. The strengthening dollar also put pressure on Bitcoin and other risk assets denominated in USD, potentially leading to a headwind for the cryptocurrency.