Iran Plan Rejected: Strait of Hormuz Crisis Sparks Oil and Crypto Volatility

Iran's seven-day plan to reopen the Strait of Hormuz and pause fighting across the Middle East has been rejected by President Trump, according to reports. The proposal involved lifting a US naval blockade, releasing frozen Iranian funds, and dropping oil sanctions in exchange for Iran reopening the strait and halting hostilities.

The rejection of this plan has sparked concerns about a prolonged Strait of Hormuz crisis, which could lead to higher prices for Brent crude oil. Analysts warn that if the crisis persists, Brent crude could surge to $150 a barrel.

Bitcoin's price has also been affected by the geopolitical shock, with early sell-offs similar to those seen in stocks. This suggests short-term downside and heightened volatility for crypto markets, exchanges, and DeFi activity.