Trump Extends Pause on Iran Strikes as Bitcoin Steadies After Sharp Drop

Tensions between the United States and Iran have escalated again. U.S. President Donald Trump recently declared that the ceasefire memorandum between the two sides was formally over, directly affecting global energy supplies and financial markets. The development is critical because turmoil in the Middle East threatens shipping through the Strait of Hormuz and could trigger rapid shifts in capital as investors weigh safe-haven assets against geopolitical risk. It has become an important indicator for the outlook for crude oil and cryptocurrencies.

After Trump confirmed in mid-July that the ceasefire had collapsed, Brent crude immediately surged 6.4% in a single day. Global equities and cryptocurrencies tumbled at the same time, while Bitcoin fell below $63,000 amid sharp volatility, reflecting intense pressure on risk assets. Markets are now closely watching short-term safe-haven inflows into stablecoins and the extent of actual shipping disruptions in the Strait of Hormuz.

The conflict between the United States and Iran has heightened geopolitical risks in the Middle East, while concerns over oil supplies and inflation weighed on global risk assets at one point. Bitcoin and crypto-related stocks such as Coinbase and Strategy are highly sensitive to liquidity and safe-haven sentiment, meaning signs of a ceasefire or negotiations are quickly reflected in cryptocurrency prices and U.S. equities.

U.S. President Donald Trump said in July that military operations against Iran were progressing better than expected and that a conflict initially projected to last four to five weeks could end early. He also said U.S.-Iran negotiations had made significant progress. The comments pushed Bitcoin back above $69,000, extended gains in crypto-related stocks and the broader U.S. equity market, and sent oil prices sharply lower.

U.S. and Israeli airstrikes on Iranian nuclear facilities and steel plants, followed by Iranian retaliation against several Persian Gulf countries, have escalated the Middle East conflict into a risk for global energy and financial markets. With U.S. equities and other traditional markets closed over the weekend, round-the-clock Bitcoin trading became a key real-time gauge of investors’ flight to safety, capital withdrawals and broader risk sentiment.

Bitcoin fell about 3% at one point over the weekend and dropped below $63,000 after the conflict entered its third day. It had briefly recovered to $68,000 following news of Iran’s supreme leader’s death, but weakened again as U.S. and Israeli airstrikes continued, Iran retaliated and South Korean stocks tumbled. Brent crude surged to $106 a barrel, while oil-linked futures on Hyperliquid rose 5%.

U.S. President Donald Trump warned that the United States was prepared to bomb Iran, citing suspected covert transfers of Iranian missiles and the U.S. seizure of a vessel carrying Chinese materials. An escalation of the conflict in the Middle East could drive up oil and safe-haven asset prices while putting selling pressure on highly volatile risk assets such as Bitcoin.

Trump recently said the "clock is ticking" for action against Iran and rejected a proposal from Tehran. Iran's air-defense systems were subsequently reported to have intercepted hostile targets. U.S. crude futures briefly surged by $5 on the news, while Bitcoin fell below $76,000 and Ethereum dropped under $2,300. Crypto-related stocks including Coinbase and Robinhood also declined.

The conflict between Iran and the United States has roiled global energy markets and risk assets, with the Strait of Hormuz serving as a vital oil-shipping route. A prolonged closure could drive up oil prices and inflationary pressure while weighing on volatile assets such as Bitcoin. Iran’s 14-point ceasefire proposal and its willingness to reopen the strait first have become key to the market’s assessment of whether geopolitical risks will ease.

As of July 20, 2026, the United States and Iran were reportedly close to signing a “ceasefire memorandum.” Although U.S. President Donald Trump remained wary of the proposal and did not rule out renewed military action, risk appetite had already recovered. After briefly moving above $79,000, Bitcoin climbed further to more than $82,000, while Ethereum also broke above $2,400.

After the United States and Israel went to war with Iran on February 28, Tehran closed the Strait of Hormuz, turning a chokepoint for nearly one-fifth of global oil and natural gas supplies into bargaining leverage. The U.S. government demanded the immediate restoration of safe passage, while Iran tied a permanent ceasefire to retaining its right to enrich uranium and the lifting of sanctions. The standoff weighed on energy prices and risk assets including bitcoin.

Iran submitted a 10-point counterproposal through Pakistan on April 6, offering to reopen the strait in exchange for a permanent ceasefire, the removal of U.S. sanctions and postwar reconstruction. Trump said the proposal was “not good enough” and maintained an April 7 deadline of 8 p.m. U.S. Eastern time. CoinDesk reported that bitcoin fell to $68,589 during Asian trading on April 7, down 0.6% over 24 hours, while U.S. crude rose above $112 and Brent crude traded at $115.66.

Diplomatic engagement between the United States and Iran affects tensions in the Middle East, energy prices and global risk appetite, with the impact also reflected in volatile assets such as Bitcoin. Washington had planned to send Steve Witkoff and Jared Kushner to Pakistan for a new round of talks involving Iran, briefly raising market hopes that tensions could ease.

According to an April 25, 2026, CoinDesk report, Bitcoin surrendered earlier gains after Donald Trump canceled the pair’s trip. The cryptocurrency fell about $100 to $77,351 near noon U.S. Eastern time. Traders viewed the move as a short-term geopolitical risk and were also watching Trump’s speech at a cryptocurrency conference in Palm Beach later that day.

U.S. President Donald Trump publicly backed “regime change” in Iran for the first time, and the White House reposted the statement, signaling that Washington may be shifting from pressure toward political intervention. If conflict in the Middle East drives up energy prices, it could intensify global inflation and demand for financial safe havens while limiting the Federal Reserve’s scope to cut interest rates.

As of July 20, mounting geopolitical risks had fueled selling in crypto assets, pushing Bitcoin below $74,000. The situation also subjected Fed nominee Kevin Warsh, who holds crypto- and AI-related assets, to scrutiny over inflation and conflict-of-interest disclosures. Volatility in oil prices and risk assets will be a key variable shaping the path of interest rates.

The Strait of Hormuz carries a significant share of the world’s oil and natural gas shipments. A blockade could drive up energy prices and inflation while hurting risk appetite across financial markets. U.S. President Donald Trump has used the threat of military action to pressure Iran to reopen the waterway, leaving Bitcoin and other crypto assets once again sensitive to geopolitical developments and safe-haven capital flows.

Trump recently gave Iran a two-week deadline to reopen the Strait of Hormuz or face a possible attack, while also signaling a two-week ceasefire. Investors bet that the conflict would ease, lifting the total cryptocurrency market capitalization by about 2.5%. Bitcoin briefly rose to $69,500, triggering about $255 million in short liquidations across the market.

U.S. President Donald Trump raised his condition for a ceasefire with Iran to “unconditional surrender” and ruled out a separate deal, escalating risks surrounding the nuclear dispute, the regional conflict and shipping through the Strait of Hormuz. The strait is a critical artery for global oil shipments. Concerns about military strikes or a blockade could drive up oil prices, the dollar and demand for safe-haven assets while weighing on risk assets such as bitcoin and stocks.

As of July 19, Trump had given Iran 48 hours to open the Strait of Hormuz or face attacks on its power plants, adding that any retaliation would draw an “extremely hard” response. Bitcoin briefly fell below $69,200 and traded as low as about $68,000 after the announcement. Oil rose, while ether, solana and global equities also came under pressure.