Bitcoin Climbs 6% Amid Iran's Strait of Hormuz Reopening Proposal

Tehran's proposal to reopen the Strait of Hormuz within seven days has sent oil prices plummeting, while Bitcoin continues its rebound with a nearly 6% gain in the past 24 hours.

A senior Iranian official said that if the US eases military pressure and lifts port restrictions, Iran would be willing to reopen the strategic waterway. This diplomatic signal was met with immediate reaction from oil markets, with Brent crude falling to a two-week low below $100 a barrel.

The Strait of Hormuz is one of the world's most critical energy routes, and Saudi Arabia's restart of its East-West Pipeline has added another factor easing concerns about regional supply. However, traders remain cautious, with KCM Trade chief market analyst Tim Waterer noting that oil prices will likely remain sensitive to headlines until diplomacy produces clear progress or another setback.

The uncertainty surrounding the Strait of Hormuz and global oil markets is influencing inflation expectations, interest-rate outlooks, and broader risk appetite. In response, investors are turning to cryptocurrencies, with Bitcoin experiencing a sharp rebound and US spot Bitcoin ETFs recording nearly $999 million in net inflows on Monday.