President Donald Trump told reporters at the NATO summit in Ankara, Turkey that the ceasefire with Iran is “over” and that the United States would probably carry out more strikes on Iran later on Wednesday. The declaration came after the US launched strikes on over 80 Iranian targets on July 7, retaliating against Iranian attacks on commercial ships in the Strait of Hormuz.
Bitcoin responded the way it usually does when missiles start flying: it went down. BTC fell over 2%, trading near $62,000, while ether and XRP posted similar declines.
What happened and why it matters
The Strait of Hormuz is one of those places most people never think about until it threatens to blow up global energy markets. Roughly a fifth of the world’s daily oil supply passes through the narrow waterway between Iran and the Arabian Peninsula. When Iran targeted commercial vessels there, it was the geopolitical equivalent of blocking the checkout lane at the world’s busiest grocery store.
The US response was swift and overwhelming, with strikes hitting more than 80 Iranian sites. Trump labeled ongoing negotiations with Iran a “waste of time,” signaling that diplomacy has, for now, been shelved in favor of force.
