US-Iran Crypto Standoff Rattles Markets as Hormuz Closure Enters Second Day

Negotiations between the US and Iran in Switzerland have entered their second day, amidst heightened tensions over the Strait of Hormuz.

The strait has been closed since Iran began demanding cryptocurrency payments, primarily Bitcoin, for ships transiting through it as early as April 2026.

Tehran's move has led to a standoff with the US Treasury, which has frozen approximately $344 million in digital assets linked to Iranian crypto wallets.

The situation has sent shockwaves through cryptocurrency markets, with Bitcoin holding steady at around $64,000 amidst the global crisis.

The wildcard is the US Treasury's next move, with experts warning that any expansion of OFAC's crypto enforcement could create compliance headaches across DeFi protocols and centralized exchanges alike.