Key Highlights
- Bitcoin (BTC) price exceeded $67,000 after Trump announced that the U.S. and Iran had signed the peace agreement.
- The broader crypto market cap increased by 4.7%, reaching $2.37 trillion.
- News of the reopening of the Strait of Hormuz has cooled oil prices, while increasing the prices of stocks, gold, and silver.
During the bilateral meeting with French President Emmanuel Macron, US President Donald Trump confirmed the peace deal with Iran had been signed. A formal signing ceremony is scheduled for Friday in Geneva.
Crypto Market Surges After the Peace Deal
Trump also stated that Iran will reopen the Strait of Hormuz by Friday, and tolls won’t be levied on ships passing through for 60 days. After the announcement, Bitcoin prices jumped above $67,000, reaching their highest in two weeks. It rose by more than 5% on Monday, trading near $67,271 before settling near $66,650. On the other hand, crude oil prices declined by more than 4%, to $83 a barrel.
Ethereum price climbed over 10%, reaching $1,846, outperforming Bitcoin. Other cryptocurrencies like XRP, Solana, and Hyperliquid experienced double-figure jumps. Zcash, Stellar, and Worldcoin also recorded gains. This surge has pushed the total crypto market up by 4.7% over the past 24 hours, reaching a total of $2.37 trillion.
The US-Iran Peace Deal
Pakistani Prime Minister Shehbaz Sharif previously stated that the government will host a historic signing ceremony for the U.S.-Iran peace agreement on Friday in Geneva, Switzerland. However, President Trump’s latest announcement regarding the agreement suggests that it has been finalized. He also said that he was likely to skip the in-person ceremony on Friday.
Additional details came after a senior U.S. official confirmed that both countries had already signed the agreement. The officials also stated that the full agreement will be released within the next 48 hours. The deal also mentions the immediate opening of the Strait of Hormuz and the removal of the U.S. blockade on Iranian ports.
Oil Prices Fell While Risk Assets Surged
With the opening of the Strait of Hormuz, normal shipping activity is expected to return in the Gulf region. As such, crude oil fell more than 5%, reaching below $80 per barrel, marking the lowest in over two months.
Trump also stated that the region’s oil shipments would resume and supply interruptions might ease soon. The reopening of the Strait of Hormuz and the renewal of shipping activities, and reduced energy costs drove investor confidence. Crypto markets, US equities, and precious metals recorded gains.
US equities saw a surge. Nasdaq Composite recorded a gain of roughly 3%, the S&P 500 rose 1.7%, the Russell 2000 marked a 1.5% increase, and the Dow Jones Industrial Average advanced by 1%.
Precious metals like gold and silver also reported earnings of about 0.8% and 1.2%, respectively.
The renowned energy supply has also influenced the Asian markets. Both the Nikkei and Kospi indexes surged over 5%.
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