President Donald Trump said Monday that the US-Iran peace deal is 'officially complete,' sending oil prices down 4% and pushing Bitcoin back above $65,000. The agreement includes the full reopening of the Strait of Hormuz, a narrow waterway that handles about a fifth of the world's oil supply.
Oil drops on open strait
Crude fell sharply on the news. The Strait of Hormuz had been a flashpoint for months, and the risk of a blockade had kept a premium baked into prices. Trump's declaration removed that threat in a single stroke. The 4% decline is one of the biggest single-day moves for oil this year. Traders who had bet on sustained tensions are now unwinding positions.
Bitcoin jumps past $65k
Bitcoin climbed above $65,000 within hours of the announcement. The peace deal clears a major source of geopolitical uncertainty that had weighed on risk assets. For crypto traders, the move underscores how macro political events can drive price action just as powerfully as regulatory news or network upgrades. The surge snapped Bitcoin out of a weeks-long consolidation range.
Why the Strait matters
The Strait of Hormuz is a chokepoint for global energy trade. During the conflict, tanker insurance rates spiked and some shippers rerouted. Monday's declaration effectively ends that disruption. The immediate effect was a steep drop in crude futures, but the longer-term implications for inflation and central bank policy are still being digested by wider markets.
The full text of the agreement hasn't been released yet, leaving open questions about enforcement and timelines. For now, markets are reacting to the headline: a major war avoided, a critical waterway reopened, and Bitcoin back above $65,000. Whether the rally in crypto holds will depend on the details that emerge in the coming days.
