US President Donald Trump confirmed the Strait of Hormuz will reopen “very soon,” warning that Iran could face a massive attack if they back out again. The comment comes as the US, Iran, and Oman are closing in on an interim agreement to reopen the Strait of Hormuz amid ongoing war, causing Bitcoin to rise while oil prices fall further on Wednesday.
US-Iran War: Trump Says Strait of Hormuz Will Reopen amid 60-Day Deal
In an interview with Fox News, Trump said “The Strait is going to be open very soon — or they’re gonna hit very hard, and then the Strait is going to be open.”
Also, he warned that Iran may face its planned massive attack if they back out again. Notably, Trump canceled the massive attack after requests by Saudi Arabia, the UAE, and Qatar.
“They know that; they understand that. I have no choice. They can’t have a nuclear weapon. It’s very simple,” Trump added.
Meanwhile, the US, Iran, and Oman are near a deal over the Strait of Hormuz, aiming for a Wednesday announcement. The 60-day interim deal focuses on suspending tolls and transit fees during the period, while both sides have reportedly agreed to clear naval mines from the waterway within 30 days.
This directly contradicts Iran’s statement that “the negotiations are between two coastal states and have nothing to do with others, including the United States.” Meanwhile, Iran has added new demands, including the right to collect maritime fees, an end to the US naval blockade, the lifting of US sanctions on Iranian oil.
Iran claimed the Strait of Hormuz agreement with Oman will be delayed while US threats continue. Saudi Arabia also continued talks with Yemen’s Houthi militants through Omani mediators in an effort to keep the conflict in the Red Sea from escalating further.
Bitcoin Rises as Oil Prices Fall Further
Oil prices fell below $75 per barrel today amid hopes of the Strait of Hormuz’s reopening and the US-Iran war’s ending. Oil prices extended drops for a third consecutive session, bringing the decline to more than 13% over the past week.
Bitcoin price continues to rise above $64K, up 2% in the past 24 hours. The intraday low and high were $63,397 and $64,467, respectively. However, trading volume dropped by 15% as investors await more US labor market reports for further clues on the Fed’s policy outlook.
Market expert BIT also noted that Bitcoin option skew has turned more negative again, indicating downside risks are easing. It predicts a Bitcoin rally if skew becomes less negative and price holds above the $62K support level.
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