US-Iran Deal Sends Oil Prices Lower, Crypto Markets Plummet

The US and Iran have reached an initial agreement to reopen the Strait of Hormuz, easing oil supply fears and pushing crude prices lower. WTI crude fell by 2.49% to $74.83, while Brent dropped 2.24% to $77.7. Traders had expected this response as the deal directly reduces the risk of supply disruption through the strait.

The agreement removed the single largest economic threat tied to the conflict, lowering the chance of a sudden oil spike that could have pushed inflation higher across major economies. Markets had focused on the energy threat more than the military conflict itself, which is why oil reacted first and moved sharply lower.

Crypto markets, however, did not follow the usual script. Instead of rising on de-escalation, the market fell, with Bitcoin slipping to $63,677, down 3.34% on the day and 0.70% in the past hour. Ethereum fell 4.11% to $1,722, and it lost another 0.90% during the hour.

The total crypto market capitalization also dropped about 2.4% to roughly $2.18 trillion, with XRP falling 4.22%, Solana losing 4.12%, and Hyperliquid's HYPE leading the major tokens lower with a 7.33% decline.