The reopening of the Strait of Hormuz under a new peace agreement has effectively removed the geopolitical risk premium from oil markets and shifted capital back into risk assets.
Bitcoin climbed to its highest level in nearly two weeks after the US and Iran reached an agreement to end hostilities and restore shipping through the Strait of Hormuz, easing concerns over energy supply disruptions that had weighed on markets for months.
The cryptocurrency traded around $65,844 on Monday, up about 2.1% over 24 hours. It had briefly slipped to roughly $63,722 in early Asian trading before sharply reversing on the deal headlines, according to CoinDesk data.
That move leaves Bitcoin about 9% above last week’s sub-$60,000 low, which marked its weakest level since October 2024.
The broader crypto market also moved higher. Ether gained 2.5% to $1,721, Solana rose 3.6% to $71, and XRP added 3.2% to $1.19. Hyperliquid’s HYPE led the rally with a 7.5% gain to nearly $65, while BNB and Dogecoin each posted gains of more than 1%.
In traditional markets, Brent crude dropped over 4% to around $83 per barrel as traders unwound the geopolitical premium built up since late February. Asian equities rallied more than 3%, with Japan’s Nikkei 225 approaching a record close. S&P 500 futures rose 1.2%, and the US dollar weakened against major peers.
The agreement was first announced by Pakistani Prime Minister Shehbaz Sharif, followed by confirmation from US President Donald Trump and Iranian state media. Trump stated that the Strait of Hormuz would reopen on Friday following the formal signing.
While the full text of the deal has not yet been released, its framework had already been widely expected by markets in the days leading up to the announcement.
Bitcoin’s drop below $60,000 last week was driven by a two-pronged shock: escalating Iran tensions pushed oil higher, reinforcing expectations for tighter monetary policy, which in turn pressured risk assets including crypto. The reversal in oil prices now effectively unwinds that chain reaction.
However, a key structural concern remains. Strategy’s disclosure earlier this month that it sold 32 BTC to fund preferred dividend obligations sparked unease about weakening corporate demand, challenging assumptions around persistent institutional accumulation.
ETF outflows have also weighed on sentiment, and neither of these demand-side pressures is resolved by geopolitical easing. The key question now is whether institutional inflows return alongside improved risk appetite, or whether Bitcoin’s rebound fades once the Iran relief rally is fully priced in.
