Trump Calls Off Iran Strike, Gulf Markets Soar as Bitcoin Surges

A major escalation in US-Iran tensions was narrowly avoided when President Donald Trump announced on August 2, 2026 that he would be calling off planned military strikes against Iran.

The decision came after Saudi Arabia, Qatar, and the UAE had been lobbying Washington for a diplomatic off-ramp, and they reportedly proposed a framework centered on reopening the Strait of Hormuz. The narrow waterway is crucial to global oil flows, and its closure would have had severe economic consequences.

The news sent Gulf stock markets surging, with Saudi Arabia's Tadawul reversing negative trends that had built through July. However, the cancellation is only a delay, not a resolution, and investors are watching closely for signs of further de-escalation or renewed tensions.

Crypto traders took notice as well, with Bitcoin rising approximately 5% in the minutes following Trump's announcement, briefly trading above $71K. This move highlights the increasing role that geopolitical events play in shaping cryptocurrency markets, which have traditionally been seen as safe-haven assets.