The crypto market fell 1.2% to $2.49 trillion on Thursday as investors remained concerned over the ongoing fragile ceasefire between the U.S. and Iran.
Summary
- Crypto market cap drops 1.2% to $2.49T as fragile U.S.–Iran ceasefire keeps investors cautious.
- Iran restricts Strait of Hormuz traffic and proposes a $1 per barrel fee, drawing global criticism.
- Oil nears $100 while rising war fears and derisking pressure crypto and broader markets.
In an April 9 post on Truth Social, United States President Donald Trump said that “all U.S. ships, aircraft, and military personnel” will remain in place around Iran until the real agreement on a ceasefire “is fully complied with,” warning that failure to do so could lead to renewed conflict.
The threat comes as Iran continues to restrict traffic in the Strait of Hormuz, which has only been partially opened following the ceasefire, with only a handful of ships allowed to pass so far, per reports.
The Iranian leadership has insisted that it should receive a fee of $1 per barrel for oil passing through the waterway. The U.S. has previously called on Iran to fully open the strait for free passage of ships, a key transit point that handled as much as 20% of the global oil supply before the war began.
Despite the ceasefire, Iran’s activity in the region has attracted criticism from global powers, including those in the European Union. They call on the Iranian government to fully open the maritime route. The Iranian administration previously claimed that the levy on the strait is to pay for maritime security and for damages to its infrastructure during the war.
After 40 days of fighting, the U.S. and Iran agreed to a two-week ceasefire on Wednesday morning, with negotiations expected to begin on Friday in Pakistan’s capital, Islamabad. One of the key aspects of the truce is allowing shipping to resume through the Strait of Hormuz, through which nearly 20% of the world’s oil and gas is shipped during peacetime.
Meanwhile, despite the ceasefire, a wave of attacks from the Israeli forces targeted Lebanon, killing several civilians and combatants, prompting Lebanon to declare a national day of mourning.
In their statements, the Israeli Prime Minister Benjamin Netanyahu said Lebanon was not included in the ceasefire deal between the U.S. and Iran.
However, Iran’s Foreign Minister Abbas Araghchi says the U.S.-Iran terms are clear on Lebanon, and that Washington must choose between “ceasefire or continued war.”
While the crypto market rebounded on Wednesday after initial reports of the ceasefire being worked upon came out, it subsequently pared a big part of its gains as profit-taking set in.
Trump’s recent threats of attacks against Iran have meanwhile once again rattled the market as investors fear a prolonged war between the two nations. Oil prices were approaching $100 at the time of writing, with WTI crude oil and Brent crude oil rising 5% and 4%, respectively, over the past day.
Meanwhile, besides the crypto market, investors have also pulled away from safe-haven assets such as gold and silver, which confirms that the derisking pattern is evident across global markets.
As such, the crypto market could continue its downtrend if Iran doesn’t comply with the terms of the ceasefire or if the U.S. launches a fresh strike against Iranian targets.
However, if Iran fully opens the Strait of Hormuz, it could trigger a U-turn for cryptocurrencies and other markets as stability returns.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
