The reopening of the Strait of Hormuz through a peace agreement has effectively stripped the geopolitical risk premium out of oil and redirected capital back into risk assets.
Bitcoin climbed to a nearly two-week high after the US and Iran agreed to end hostilities and resume shipping through the Strait of Hormuz, easing concerns over energy supply disruptions that had pressured markets in recent months.
The asset traded around $65,844 on Monday, up roughly 2.1% over the past 24 hours. It had briefly fallen to about $63,722 during early Asian trading before reversing sharply on news of the agreement, according to CoinDesk data.
That move places Bitcoin about 9% above last week’s sub-$60,000 low, its weakest level since October 2024.
The broader crypto market moved higher as well. Ether gained 2.5% to $1,721, Solana rose 3.6% to $71, and XRP advanced 3.2% to $1.19. Hyperliquid’s HYPE led gains with a 7.5% jump to nearly $65, while BNB and Dogecoin both posted modest increases of more than 1%.
In traditional markets, Brent crude fell over 4% to around $83 per barrel as traders unwound the geopolitical premium that had supported prices since late February. Asian equities surged more than 3%, with Japan’s Nikkei 225 nearing a record close. S&P 500 futures rose 1.2%, while the US dollar weakened against major currencies.
The agreement was first announced by Pakistani Prime Minister Shehbaz Sharif, followed by confirmation from US President Donald Trump and Iranian state media. Trump said the Strait of Hormuz would reopen on Friday following the formal signing.
While the full details of the deal have not yet been published, its framework had already been widely anticipated in markets.
Bitcoin’s drop below $60,000 last week was driven by a dual shock: rising Iran tensions pushed oil higher, reinforcing expectations for tighter monetary policy, which in turn pressured liquidity-sensitive assets like crypto. The reversal in oil now unwinds that chain reaction.
However, a key headwind remains. Strategy’s disclosure earlier this month that it sold 32 BTC to fund preferred dividend payments triggered concern over weakening corporate demand, challenging the assumption of continuous accumulation.
ETF outflows have also added pressure, and neither of these structural demand issues is resolved by the geopolitical relief. The key question now is whether institutional inflows return alongside the risk-on sentiment, or whether Bitcoin’s rebound fades once the Iran-driven repricing is complete.
