TLDR
President Trump said the Strait of Hormuz will reopen “very soon” and warned of a strong response if Iran backs out again.
The US, Iran, and Oman are close to an interim deal to reopen the Strait of Hormuz.
Iran has added new demands, including maritime fees and an end to the US naval blockade.
Oil prices fell below $75 per barrel, dropping more than 13% over the past week.
Bitcoin rose above $64,000, gaining 2% in the past 24 hours.
President Trump said this week that the Strait of Hormuz will reopen soon. He made the comment during an interview with Fox News.
Trump warned that Iran could face a strong military response if it backs out of the agreement again. He said Iran understands it cannot have a nuclear weapon.
The Strait of Hormuz is a key waterway for oil shipments. Any disruption there affects oil prices around the world.
Strait of Hormuz Talks Continue
The United States, Iran, and Oman are working on an interim deal. Officials had aimed for a Wednesday announcement.
The deal would last 60 days. It focuses on suspending tolls and transit fees during that period.
Both sides have also reportedly agreed to clear naval mines from the waterway. That process is expected to take up to 30 days.
Iran has stated publicly that the talks are only between coastal states. It said the negotiations have nothing to do with the United States.
Despite that statement, Iran has added new demands to the talks. These include the right to collect maritime fees and an end to the US naval blockade.
Iran also wants the United States to lift sanctions on Iranian oil. These added demands could delay the final agreement.
Saudi Arabia is also involved in separate talks. It has been speaking with Yemen’s Houthi militants through mediators from Oman.
The goal of those talks is to prevent further conflict in the Red Sea. Saudi Arabia wants to keep the situation from escalating.
Iran has said the agreement with Oman could face delays. It pointed to continued threats from the United States as one reason.
Bitcoin Price Moves Higher
Oil prices dropped below $75 per barrel this week. Prices have now fallen for three straight sessions.
The overall decline reached more than 13% over the past week. Hopes for a resolution to the conflict have contributed to the drop.
Bitcoin moved in the opposite direction. The price rose above $64,000, up 2% over the past day.
The intraday low was $63,397. The intraday high reached $64,467.
Trading volume dropped by 15% during this period. Investors appear to be waiting for more information on the US labor market.
That data could offer clues about the Federal Reserve’s next policy moves. Markets often react to labor reports when setting expectations for interest rates.
One market analyst pointed to changes in Bitcoin options data. The analyst said the options skew has turned negative again, which points to lower downside risk.
The analyst said a Bitcoin rally could follow if the skew becomes less negative. This would need to happen while the price holds above the $62,000 support level.
