US-Iran Deal Sparks Cryptocurrency Rally as Strait of Hormuz Reopens

The US-Iran peace process has produced its first confirmed concrete result after five months of false starts and denials. The US announced free passage through the Strait of Hormuz and lifted the naval blockade against Iran, which was met with relief in the cryptocurrency market.

BTC rose to $65,642.70, a 2.48% increase over 24 hours, while ETH jumped 3.65% to $1,723.88, distancing itself from the critical $1,420 support level. The Strait of Hormuz reopening and naval blockade lifting are real and significant, but the deeper issues that have made this conflict consequential for global oil markets and inflation remain subject to a 60-day negotiation period.

The mechanism matters because a reopened Strait of Hormuz directly addresses the oil supply shock that has kept Brent and WTI elevated. If oil prices decline meaningfully on confirmed Hormuz access, the inflationary pressure that has weighed on Bitcoin since April will begin to ease.