Bitcoin surges as US-Iran peace deal set to reopen Strait…

Bitcoin rallied sharply after the United States and Iran announced an interim agreement to end hostilities and reopen the Strait of Hormuz, with a formal signing scheduled in Switzerland on Friday. The deal triggered a broad risk-on shift across global markets, with BTC leading the crypto complex higher.

Why it matters

The Strait of Hormuz is the world's most critical oil chokepoint, handling roughly 20% of global petroleum flows. A closure or threat of closure typically spikes energy costs, compresses corporate margins, and pushes investors toward safe-haven assets. The reopening removes that premium — and the simultaneous drop in WTI crude to just under $81 per barrel, a two-month low, signals the market is pricing in a durable de-escalation rather than a temporary ceasefire. For Bitcoin, the move is a textbook geopolitical-risk unwind: capital that parked in BTC as a hedge rotates back into risk assets, but the underlying bid from macro uncertainty has also eased, historically a net positive for speculative assets.

Market impact

Nasdaq 100 futures jumped 1.5% and S&P 500 futures gained 0.9% on the news, confirming the risk-on read. WTI crude plunged nearly 5% in tandem. Bitcoin's rally alongside equities — rather than decoupling — underscores its current correlation with the broader risk complex. Traders will be watching whether the Switzerland signing on Friday closes without incident; any breakdown in the formal deal could reverse these moves quickly.