US-Iran Deal Boosts Bitcoin as Strait of Hormuz Tensions Ease
The Strait of Hormuz has become a focal point in negotiations between Iran and the US, with mediators working to revive a 14-point memorandum of understanding. The agreement, signed in mid-June 2026, represents the most significant diplomatic engagement between Washington and Tehran in years.
Under the deal, the US will lift its naval blockade within 30 days of signing, while Iran will ensure safe passage for commercial vessels through the Strait of Hormuz for an initial 60-day period at no charge. A 60-day ceasefire is also baked into the framework.
The agreement has had a ripple effect on crypto markets, with Bitcoin surging past $65,000 following the MOU announcements. This surge can be attributed to reduced volatility expectations across risk assets, as less geopolitical chaos in the world's most important oil chokepoint means lower volatility expectations.
Iran began using crypto payments, specifically Bitcoin and USDT, for tolls and insurance related to maritime operations through the Strait starting in mid-March 2026. However, around July 31, 2026, sanctions were imposed on Iranian firms engaged in crypto payments tied to passage tolls.