Trump signs deal to reopen Strait of Hormuz as oil drops and Bitcoin surges past $66K

President Trump and Iranian President Masoud Pezeshkian have signed a preliminary memorandum of understanding aimed at reopening the Strait of Hormuz to commercial shipping and launching a 60-day window for nuclear talks. The deal sent oil prices tumbling roughly 5% and pushed Bitcoin above $66,000 as markets recalibrated around lower geopolitical risk.

The Strait of Hormuz is a narrow waterway between Iran and Oman through which roughly 20% of the world’s oil supply has historically flowed. Its closure during the US-Israel-Iran escalation created significant disruption for global energy markets.

What the deal actually says

The MOU, signed around June 17, establishes two key pillars. First, Iran commits to refraining from pursuing nuclear weapons and agrees to begin formal discussions on its nuclear program within a 60-day negotiation window. Second, the Strait of Hormuz reopens for toll-free commercial passage during that same two-month period, after which further guidance on shipping terms could be facilitated by Oman.

In exchange, the US eases certain sanctions on Iran. The deal arrived after extensive negotiations that began in May, following a period of sharp military tensions between the US, Israel, and Iran that had effectively shut down the strait and sent energy prices soaring.

Markets respond, critics push back

Oil prices fell approximately 5% on the announcement as traders priced in the prospect of restored supply flows through the strait. Bitcoin surged above $66,000, reflecting a broader risk-on shift as reduced uncertainty pulled capital toward higher-volatility assets.

US Democrats have criticized the agreement as overly concessional to Iran, arguing that the sanctions relief was granted too quickly relative to the commitments received. Israeli officials have echoed that criticism, with concerns also raised over the enforcements of the terms, the postponed nature of nuclear talks, and the slow resumption of shipping activities in the strait.

What this means for investors

The 60-day negotiation window is the key variable going forward. Cheaper energy also tends to benefit Bitcoin miners directly, since electricity is their single largest operating cost. If the US proceeds with meaningful sanctions relief, Iranian oil could re-enter global markets in larger volumes, with bearish implications for crude prices.

The speculative chatter around possible crypto-based transit fees for Hormuz passage never materialized in the final MOU. No specific tokens or blockchain mechanisms were included in the agreement.

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