US-Iran peace talks hit a major roadblock as President Trump calls Iran’s response to the latest peace proposal “totally unacceptable.” It sends oil prices 5% higher, increasing selling pressure on Bitcoin and gold.
The US dollar index (DXY) also climbed above 98 today amid uncertainty surrounding the US-Iran ceasefire. BTC, ETH, and XRP short liquidations increased in the past few hours as traders panic ahead of this week’s CPI inflation data release and the Trump-Xi Jinping meeting.
Stalled US-Iran Peace Talks Send Bitcoin Lower
US stock market futures, Bitcoin, and gold fall as peace talks with Iran stalled, with President Trump saying he does not like Iran’s response to the US peace proposal. “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it,” Trump said.
Notably, Iran has shared a 10-point counter message, saying its growing presence is part of a new regional order. Key points include labeling the US military presence as the “main source” of instability, calling for the removal of American bases, asserting Iranian control over the Strait of Hormuz for regional security, and promising new rules and management.
Iran framed the proposal as a path to “shared destiny” with Gulf nations, while declaring foreign powers are unwelcome in the Persian Gulf. As Bitcoin and gold are slumping, Peter Schiff scoffed, “I wonder how many Trump insiders got positioned just before this post.”
Meanwhile, oil prices surged by almost 5% amid stalled US-Iran peace talks, increasing inflation risks. Trump plans to continue “squeezing Iran’s economy and oil exports” through a prolonged blockade of the Strait of Hormuz.
BREAKING: US oil prices surge nearly +5% after President Trump says “I don’t like” Iran’s response to the US’ 14-point peace proposal. pic.twitter.com/rmFEKBYU4B
— The Kobeissi Letter (@KobeissiLetter) May 10, 2026
Donald Trump-Xi Jinping Summit Looms as Iran Tensions Add Uncertainty
The setback comes days before President Trump’s high-stakes meeting with Chinese President Xi Jinping, scheduled from May 13-15. The agenda includes the Iran war, Taiwan, nuclear arms control, AI, trade imbalances, and rare earth supply chains.
Bitcoin investors need to keep an eye on the meeting as any escalation in the Middle East could complicate the US-China relations, particularly supply chain risks. However, steady developments could bring certainty and stability in Bitcoin, gold, and other assets.
Notably, traders are holding back ahead of the U.S. Bureau of Labor Statistics’ April CPI and PPI inflation data release this week. The US CPI inflation surged to 3.3% in March, while PPI came in lower-than-expected at 4%.
Bitcoin Traders Cautious, Not Bearish: Experts
While Bitcoin faces headwinds due to geopolitical uncertainty, on-chain data suggests no immediate crash ahead. CryptoQuant’s Realized Cap Net Position Change signals inflows in Bitcoin.
On-chain analyst Axel Adler Jr claimed Bitcoin has already exited the “panic zone,” with capital inflows recovering. However, he added that real capital inflow is still 98% weaker.
Crypto market expert BIT (formerly Matrixport) said “Bitcoin continues to grind higher, and this week the market has several potential catalysts lined up.”
The three catalysts include Kevin Warsh’s potential confirmation as Fed Chair, the CLARITY Act vote on Thursday, and the Trump-Xi meeting. BIT claims both sides have an incentive to keep the tone constructive despite the US-Iran peace talks having stalled.
Bitcoin has dropped 2% to $80,700 in the past few hours. The 24-hour low and high are $80,274 and $82,430, respectively. Furthermore, trading volume has increased by 95% over the last 24 hours.