Trump-Xi Summit Shakes Markets: Bitcoin and Stocks Rally, Oil Drops

Monday saw gains for stocks and crypto alongside a decline in oil prices. Investors are factoring in several events this week, headlined by the Trump-Xi meeting in Washington.

Bitcoin (BTC) remained above $81,000 as Asian equities advanced, while crude dropped to its lowest point in over a week.

Beijing Becomes the Variable in the Iran Standoff

Trump is set to meet with Xi in Washington on September 24. Traders view this meeting as the week's primary driver for trade sentiment, and it now also carries a second dimension related to the Gulf.

Saudi Arabia has requested Beijing's assistance regarding the Houthis, leading China to privately ask Tehran to leverage its influence over the Yemen-based group. Reuters reported the appeal on September 17, citing three Iranian sources with knowledge of the matter.

The Iran-backed group declared it attacked sensitive sites in Riyadh on Saturday using missiles and drones. It also targeted an Aramco facility at the Red Sea export hub of Yanbu.

Mark Pfeifle, a Republican strategist and former White House national security official, told Al Jazeera that China's involvement is the development to monitor this week.

"Now, the Saudis have asked the Chinese to intervene with the Iranians and to hold back the Houthis. So, you're seeing for the first time, really, China involving themselves," Pfeifle said.

In the meantime, Tehran has already acted. Iran sent its conditions for ending the war to Washington via Qatari mediators, as security chief Mohsen Rezaei told Al Jazeera on Saturday.

These terms include ending the conflict on all fronts, unfreezing Iranian funds, and lifting the naval blockade.

Global Markets Climb as Oil Slips Over 2%

Now, traders see potential for diplomacy during UN week. At the same time, Saudi shipments are recovering. Oil flows through the Strait of Hormuz averaged 2.9 million barrels per day (bpd), a sharp rise from 700,000 bpd in August.

These factors pushed oil prices down. West Texas Intermediate traded near $98 a barrel, down roughly 2.2%, while Brent fell about 2.1% to around $102.

Equities moved in the opposite direction. South Korea's KOSPI rose 1.67% to 7,009.27, the Kosdaq added 0.99%, Taiwan's TAIEX gained 1.10%, and Hong Kong's Hang Seng rose 0.59%.

S&P 500 futures were up 0.43%, and Nasdaq 100 futures gained 0.61%. Bitcoin added 1.29% to about $81,433. Ethereum (ETH) climbed close to 3% over 24 hours to $2,663. Overall, the market rose 0.089%.

This week will reveal whether the Washington summit yields any progress on Iran or if the diplomatic track stalls once more.