Iran has rejected a US ceasefire proposal delivered by Iraqi leaders on Friday, prompting President Trump to threaten a "massive attack" against Iran and the Houthis. The development sent US stock futures lower, but Bitcoin and XRP prices held steady, showing crypto's continued detachment from traditional market reactions to geopolitical risk.
Ceasefire rejected, threats escalate
Iraqi leaders presented the US ceasefire proposal to Iranian officials on Friday, but Tehran quickly dismissed it. In response, President Trump warned of a "massive attack" targeting both Iran and the Houthis. The US stance on control of the Strait of Hormuz remains unresolved, adding another layer of uncertainty to the region.
Stocks dip, crypto stays calm
US stock futures fell following the news, reflecting investor unease about a potential escalation. But the crypto market didn't flinch. Bitcoin and XRP prices remained stable, suggesting that digital assets are not currently pricing in the same risk premium as equities. Whether that resilience holds if the situation worsens is an open question.
Strait of Hormuz in focus
The unresolved US position on the Strait of Hormuz is a key variable. The waterway is critical for global oil shipments, and any disruption could ripple through energy markets. For now, the crypto market appears to be treating the standoff as a regional issue rather than a systemic threat.
What traders are watching
With no new diplomatic talks announced, the immediate focus is on whether Trump follows through on his threat. The lack of a clear US strategy on the Strait of Hormuz leaves room for miscalculation. Crypto traders are likely to keep an eye on oil prices and any signs of broader conflict, but for the moment, the market is holding its ground.
