(Editor’s note, April 18 – This article has been updated with the latest cryptocurrency prices)
US President Donald Trump took over Truth Social to announce that the Strait of Hormuz is now fully open for passage – a statement that came hours after Iranian Foreign Minister Abbas Araghchi confirmed that the waterway would be opened to all commercial vessels for the remainder of the US-Iran ceasefire.
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Trump weighs in as Bitcoin rises
Bitcoin responded quickly. The leading cryptocurrency took a sharp jump after Araghchi’s announcement, rising above $78,000 – the highest since February.
At the time of reporting, there was talk of trading $78,151up nearly 5% on the day, according to CoinMarketCap data.
Trump had expressed optimism the day before that the war with Iran would end soon. His Truth Social post citing Iran’s announcement added weight to what was already a significant shift in the region’s security posture.
“The Street will be open during the period of the remaining ceasefire between the US and Iranwhich expires on April 22,” Foreign Minister Abbas Araghchi said.
The ceasefire between the US and Iran has a hard deadline: April 22. The reopening of the Strait is tied to that window, and Iran’s Port and Maritime Organization has already announced a coordinated route that ships will have to follow.
The Lebanon deal opens up the broader equation
The decision to reopen the Strait did not come about in isolation. Iran has long maintained that Lebanon was part of the terms it agreed to in its ceasefire with the US.
When Israel and Lebanon signed a 10-day ceasefire agreement, it created an important condition for Iran to take action. The Lebanon Treaty essentially opened the door to the Hormuz announcement.
That series of events – the Lebanon deal, the reopening of Hormuz, and then Bitcoin’s rally – unfolded within a short period of time, pushing the markets to mid-session. The crypto market responded across the board, with broader sentiment lifted by easing tensions in the Middle East.
The Strait of Hormuz is one of the most critical shipping lanes in the world. A significant part of global oil exports passes through it. Any closure or threat of closure tends to throw both energy markets and risk assets into turmoil. Its reopening, even on a temporary basis, removes a source of uncertainty for traders.
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What happens after April 22?
The current arrangement has a short shelf life. The ceasefire between the US and Iran expires in five days. Whether it is expanded – and whether the Strait remains open beyond that point – depends on ongoing negotiations.
Reports indicate that Iran is the A ceasefire in Lebanon as confirmation of his broader position in the talks. If a resolution to the broader conflict is reached, it would likely be seen as a positive signal for Bitcoin and the broader crypto market. For now, the price reaction suggests traders are pricing in a degree of cautious optimism.
No formal extension of the US-Iran ceasefire has been announced.
Featured image from SeaTradeMaritimeNews, chart from TradingView