On Friday, Bitcoin surged to its highest level in two months following an announcement by Iran that commercial traffic would be permitted through the Strait of Hormuz during a ceasefire between Israel and Lebanon. Seyed Abbas Araghchi, Iran’s Foreign Minister, stated via Xpost before market hours: ‘In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire.’ He emphasized that ships must follow a specific route coordinated by Iranian officials. This strait is crucial as it sees 20% of global oil shipments.
The ceasefire between Iran and Lebanon began last Thursday evening, according to U.S. time. Bitcoin was trading at approximately $77,400, marking a 5% gain over the past day, per CoinGecko—its highest price since early February and an increase of over 22.6% from seven weeks ago when tensions in the Middle East escalated.
Other cryptocurrencies also saw substantial gains: Ethereum rose by 6% to $2,440, XRP increased by 6% to $1.49, and Solana surged 6.4% to $90. Meanwhile, major U.S. stock indexes like the S&P 500 and Nasdaq reached record highs.
The stock price for Strategy climbed 12.5% to $168, its highest in three months, according to Yahoo Finance. Additionally, Coinbase shares rose by 5% to $210, while Robinhood increased by 5% to $92 within the day.
U.S. President Donald Trump confirmed on Truth Social that ‘The Strait of Hormuz is open for business.’ He noted that until a full agreement with Iran is realized, Iranian ships would face blockade measures.
‘Markets have been anticipating this risk-on signal,’ said Matt Mena, senior crypto research strategist at 21Shares. ‘By alleviating one of the world’s key geopolitical chokepoints, Iran has unleashed significant liquidity and renewed investor confidence.’
Following Araghchi’s announcement, WTI crude oil futures saw a sharp decline, set to drop 11% on Friday to $84 per barrel as reported by Trading Economics. Earlier in the month, the benchmark had surged to $115, its highest since September 2022.
On Myriad—a prediction market owned by Decrypt’s parent company Dastan—traders began predicting WTI crude oil futures would fluctuate between $55 and $120. Before Araghchi’s statement, they estimated a 76% chance of hitting the higher mark on Friday.
Moreover, traders grew confident that the seven-day moving average for transit calls through the Strait of Hormuz would exceed 15 by month’s end, with an 84% probability—a significant rise from a 45% likelihood just a month prior.
Editor’s note: This story has been updated post-publication to include additional details.