Iran Closes Strait of Hormuz, Raising Oil Volatility and Crypto's Trade Role

Dollar Steadies as Iran Tensions Keep Crypto on Edge

Bitcoin

This de-escalation aligns with fading Middle East premium pricing in oil futures, which could reduce inflation volatility and accelerate Fed rate-cut expectations. However, the exclusion of nuclear weapons from initial talks signals continued structural risk that may limit sustained risk-on momentum in a market where 82% of altcoins are trading below 200-day moving averages.

Trump stated Iran is nearing a US agreement while Iran confirmed progress but excluded nuclear weapons from the initial framework.

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The 25% profit jump reveals how energy volatility is being monetized by traditional players while crypto remains disconnected from real-world value capture. This event highlights the growing divergence between legacy energy markets and digital assets, exposing crypto's vulnerability to oil-driven inflation shocks. Historically, oil-driven inflation cycles correlate with 15-20% crypto drawdowns within 3 months as capital rotates to tangible assets.

Shell reported a nearly 25% profit increase attributed to oil price volatility from the Iran war impact