Bitcoin Climbs Toward $66K as Trump Announces Iran Strait of Hormuz Breakthrough
Bitcoin surged to its strongest level in nearly two weeks after US President Donald Trump announced what he described as a finalized agreement with Iran that would restore unrestricted shipping through the Strait of Hormuz, a critical global energy corridor.
In a series of posts published Sunday evening, Trump declared that a deal with Iran had been completed and said the United States would remove its naval blockade, allowing commercial vessels to resume normal operations through the strategic waterway. The announcement fueled optimism across financial markets, with investors interpreting the development as a potential end to months of geopolitical uncertainty in the Middle East.
Following the news, Bitcoin rallied to almost $66,000 during Monday trading, reaching its highest price since early June. The cryptocurrency touched $65,881 on major exchanges before easing slightly, marking a notable recovery from the sub-$60,000 levels seen earlier this month.
Market analysts attributed the move to improving investor sentiment as tensions surrounding the Iran conflict appeared to ease. According to researchers, the possibility of renewed oil flows and reduced geopolitical risks encouraged traders to rotate back into higher-risk assets, including cryptocurrencies.
While details of the agreement remain limited, reports indicate that the arrangement still requires formal approval from Iran, with signing efforts expected later this week under international mediation. Iranian officials have publicly acknowledged progress toward ending hostilities, signaling a potential shift toward regional stability.
The positive momentum extended beyond Bitcoin. The broader cryptocurrency market added roughly 2% in value over the day, with several alternative digital assets posting stronger gains. Tokens such as Hyperliquid (HYPE), Zcash (ZEC), and Near Protocol (NEAR) outperformed the wider market, delivering significant advances.
Energy markets moved in the opposite direction. Crude oil prices fell sharply as traders priced in the prospect of restored supply routes. West Texas Intermediate (WTI) crude dropped around 5%, while Brent crude declined nearly 4.6%, reflecting expectations of improved oil exports through the reopened shipping channel.
Despite the rally, Bitcoin remains well below its October record high above $126,000. However, the latest rebound highlights the asset’s sensitivity to macroeconomic and geopolitical developments, particularly when shifts in global risk sentiment influence investor behavior.
Attention now turns to the Federal Reserve’s upcoming interest rate decision. Investors are closely watching policymakers for signals on future monetary policy, especially as inflation remains elevated. Current market expectations overwhelmingly favor keeping rates unchanged, though any unexpected commentary from central bank officials could introduce fresh volatility across crypto and traditional financial markets.