Bitcoin fell to $70,623 on Sunday after the United States announced the closure of the Strait of Hormuz following the failure of peace talks with Iran.
Bitcoin (BTC) prices initially fell 1.9% to $71,686 after US President Donald Trump confirmed the blockade in a post on Truth Social on Sunday, adding that peace talks had broken down because Iran refused to halt its nuclear program, the only issue that “really matters.”
Bitcoin fell further to $70,623 when the U.S. futures market opened late Sunday, crude oil rose 9.5% to $105 per barrel within the first 30 minutes of market opening, and as of press time Bitcoin was down 2.7% on the day.
The dispute between the United States and Iran over control of the Strait of Hormuz, which handles one-fifth of the world’s oil trade, has caused major turmoil in the past six weeks in financial markets, especially oil markets, which are at their most volatile since Russia’s invasion of Ukraine in early 2022.
In addition to the ceasefire announced Tuesday, Iran has asked the United States to pay war reparations and unfreeze blocked Iranian financial assets.
President Trump did not directly address those requests in his Truth Social posts, instead blaming Iran’s reluctance to abandon its nuclear weapons program.
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It also labeled Iran’s use of mines in waterways and demands for tolls as “global extortion” and ordered the U.S. Navy to intercept ships that had paid Iran and destroy the mines.
Bitcoin rises after war between US and Iran begins
Despite the conflict, Bitcoin has risen about 7.4% to $71,194 since the conflict between the US and Iran began on February 28, when a US airstrike killed Iranian Supreme Leader Ayatollah Khamenei.
However, since the US-Iran war began, Bitcoin has still outperformed the S&P 500 and gold, regaining lost ground from October, when Bitcoin hit a high of $126,080.
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