Strait of Hormuz talks support oil decline and Bitcoin gains
President Trump announced the Strait of Hormuz would reopen soon, triggering an oil price selloff and lifting Bitcoin above $64,000.
President Trump stated this week that the Strait of Hormuz will reopen soon, warning Iran could face a strong military response if it withdraws from the agreement again. The United States, Iran, and Oman are negotiating an interim 60-day deal focused on suspending tolls and transit fees, with both sides reportedly agreeing to clear naval mines over the following 30 days.
Iran has made the talks conditional on new demands, including the right to collect maritime fees and an end to the US naval blockade, alongside sanctions relief on Iranian oil. These additions could delay the final agreement, despite Iran's public claim that negotiations involve only coastal states.
Oil prices fell below $75 per barrel this week, down more than 13% over seven days as hopes for a conflict resolution improved. Bitcoin moved inversely, rising above $64,000 over the same period—a 2% daily gain. Intraday price action ranged from $63,397 to $64,467, though trading volume declined 15%, with investors appearing to await labour market data that could inform expectations around Federal Reserve policy moves.
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