Bitcoin tumbled to $70,623 on Sunday after the U.S. announced a blockade of the Strait of Hormuz following failed talks with Iran. The cryptocurrency initially fell about 1.9% to $71,686 after President Donald Trump confirmed the blockade on Truth Social, saying talks collapsed because Iran refused to end its nuclear weapons program — “the only issue that really mattered.”
Bitcoin sank further to $70,623 as U.S. futures opened late Sunday, while oil jumped roughly 9.5% to $105 per barrel within the first half hour of trading. At the time of reporting, Bitcoin was down about 2.7% for the day.
The dispute over control of the Strait of Hormuz, which carries roughly one-fifth of global oil shipments, has rattled markets for six weeks, producing oil volatility not seen since Russia’s 2022 invasion of Ukraine. Earlier in the week a ceasefire had been announced, but Iran also demanded U.S. payments for war reparations and the unfreezing of Iranian assets — demands that were not addressed in Trump’s post. He blamed the breakdown on Iran’s stance on its nuclear program.
Trump also condemned Iran’s use of mines in the waterway and its collection of tolls as “world extortion,” directing the U.S. Navy to block vessels that pay Iran and to destroy mines.
Despite the recent escalation, Bitcoin is roughly 7.4% higher — around $71,194 — since hostilities began on Feb. 28. Over that period the crypto has outperformed the S&P 500 and gold, recovering some lost ground after reaching a high of $126,080 in October.