Crypto markets rebounded after US President Donald Trump said a peace deal with Iran was close to being finalized, helping ease investor concerns over rising geopolitical tensions.
In a post on Truth Social on Saturday, Trump said an agreement between the United States and Iran had been “largely negotiated” and that final details were still being discussed with several regional countries, including Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Egypt and Bahrain.
“Final aspects and details of the deal are currently being discussed and will be announced shortly,” Trump wrote, adding that the Strait of Hormuz would remain open under the agreement.
The comments helped lift risk assets, including cryptocurrencies, after recent fears over possible disruption in the Strait of Hormuz pushed energy prices higher and pressured global markets.
The Strait of Hormuz is one of the world’s most important shipping routes for oil and gas. Concerns over a possible closure have weighed on investor sentiment and increased volatility across financial markets in recent weeks.
Trump’s comments came as a fragile ceasefire between the US and Iran continued following several failed negotiation attempts earlier this year.
US Secretary of State Marco Rubio also reiterated Washington’s position during a visit to India on Saturday, saying Iran must not obtain nuclear weapons and that shipping routes in the region should remain open.
Crypto markets reacted positively to the developments. Bitcoin fell to a five-week low of $74,250 on Saturday before rebounding toward $77,000 during early Sunday trading, according to TradingView data.
Despite the recovery, Bitcoin remains under pressure after failing to break above the $82,000 resistance level and is still significantly below its October peak.
Featured image from: cointelegraph.com