The US and Iran signed an initial agreement to reopen the Strait of Hormuz, and markets reacted fast. Oil prices fell as expected, but crypto also sold off, even though the deal eased a major geopolitical risk and reduced fears of an energy shock.
WTI crude fell 2.49% to $74.83 after the agreement, while Brent dropped 2.24% to $77.7. Traders had expected that response as the deal directly reduced the risk of supply disruption through the strait.
The agreement removed the single largest economic threat tied to the conflict. By reopening the Strait of Hormuz, it lowered 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. That is why oil, the asset most exposed to the tension, reacted first and moved sharply lower.
Crypto did not follow the usual script. Instead of rising on de-escalation, the market fell, and the decline continued through the latest hour of trading.
Bitcoin slipped to $63,677, down 3.34% on the day and 0.70% in the past hour, according to CoinMarketCap. 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. XRP fell 4.22%, Solana lost 4.12%, and Hyperliquid’s HYPE led the major tokens lower with a 7.33% decline.
The agreement looked more like an economic stabilization move than a full peace deal. It eased the risk of an oil shock, but it did not settle the core nuclear dispute that drove the wider conflict. Both sides agreed to continue negotiations during a 60-day window. During that period, the deal keeps the status quo on Iran’s nuclear program in place.
That structure makes the agreement temporary and fragile. It lowers the geopolitical risk premium for now, yet it does not remove the deeper standoff that could bring back volatility later.
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The timing also matters, as the deal came shortly after a hawkish Fed meeting. Cooler oil prices may ease inflation pressure later, but that impact has not yet played out in crypto markets. For now, the immediate threat of a prolonged energy crisis looks reduced. Even so, the unresolved nuclear issue leaves the market facing a narrower but still active path to renewed pressure.
The US and Iran’s initial deal to reopen the Strait of Hormuz eased oil supply fears and pushed crude lower. Crypto, however, sold off instead of rallying, with Bitcoin, Ethereum, XRP, and Solana all weakening. The deal reduced immediate risk, but the unresolved nuclear dispute still leaves markets exposed.