The Strait of Hormuz has reopened after a deal between the US and Iran, easing concerns over oil supplies. This development could have a significant impact on crypto markets, which have been experiencing macro-driven uncertainty.
About 20% of the world's oil passes through the Strait, making its closure a major concern for global energy supplies. A naval blockade would send crude prices sharply higher and force central banks into a tighter policy stance, negatively affecting risk assets like crypto.
The reopening of the Strait is expected to reduce the pressure on the Federal Reserve to keep interest rates elevated, which could boost the present value of long-duration assets in the crypto complex. However, there is also a possibility that a sudden drop in energy prices could cool down commodities-linked crypto narratives.