Bitcoin fell to a seven-week low on Monday after Iran reportedly suspended indirect US-Iran talks and threatened to close the Strait of Hormuz. The move lifted oil prices and pushed traders away from risk assets, including crypto.
BTC dropped to around $70,680 after the reports emerged.
IRGC-affiliated Tasnim News Agency reported that Iran had suspended all mediated exchanges with the United States on Monday. The report said both sides remained apart on a deal to extend the ceasefire and end the war.
Tasnim reported that Iran planned to pursue the complete closure of the Strait of Hormuz. The agency said Iran and the Axis of Resistance were also considering other fronts, including the Bab al-Mandab Strait.
The report linked the move to Tehran’s anger over Israel’s actions in Lebanon. Iran accused Israel of continuing violations and said any ceasefire breach on one front damages the wider truce.
Tehran also demanded a full withdrawal of Israeli forces from Lebanon, according to the agency. The statement added more strain to already fragile US-Iran talks.
Oil markets reacted quickly to the threat. Brent crude rose more than 6% and moved above $97 per barrel, while U.S. West Texas Intermediate gained 7.6% and traded above $94.
The Strait of Hormuz is a major oil shipping route. A threat to close it can raise supply concerns and increase pressure on energy prices.
However, in an X post, The Kobeissi Letter highlighted the shift as a sharp turn in events. It noted that President Donald Trump had said nine days earlier that a deal with Iran was expected “shortly.”
The account said Iran had now stepped away from negotiations with the U.S. It also pointed to Tehran’s threat against both the Strait of Hormuz and Bab el-Mandeb. Trump revealed that he was not aware of Iran’s decision before it became public. He said Iran had not informed the United States about the reported move.
“It’s an appropriate thing to say, because they’re better negotiators than they are fighters,” Trump said. “But they haven’t informed us of that.”
Trump added that the development did not mean the U.S. would launch broad military strikes. “It doesn’t mean we’re going to go and start dropping bombs all over there,” he said. “We’ll keep the blockade.”
Analyst Ted also pointed to uneven stock market performance during the conflict. He said the S&P 500 had gained 10% since the start of the US-Iran war.
(adsbygoogle = window.adsbygoogle || []).push({});However, he said the index would be down 0.66% without AI stocks. He compared the narrow market support to internet stocks during the dot-com bubble.
It remains unclear whether Iran’s pause has closed all communication channels with Washington or only stopped mediated exchanges for now.
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