The fragile ceasefire between the United States and Iran lasted less than a month. President Donald Trump declared the June 17 Memorandum of Understanding “over” on July 14, following US airstrikes on an estimated 90 to 140 Iranian military sites and Iran’s retaliatory response. The diplomatic framework that was supposed to reopen the Strait of Hormuz and de-escalate regional hostilities has instead become the latest geopolitical flashpoint rattling global markets.
Bitcoin took the hit you’d expect. The largest digital asset surged above $82,000 on June 18, the day after the MoU was signed, only to crash below $62,000 by early July as the agreement started falling apart. That’s a $20,000 round trip in a matter of weeks, and the crypto market’s collective margin accounts paid the price: roughly $350 million in liquidations followed the latest escalation on July 13.
What the MoU was supposed to do
The 14-point agreement signed on June 17, 2026, was designed to be a structured off-ramp. The core objective was straightforward: establish a ceasefire and reopen the Strait of Hormuz, one of the world’s most critical oil chokepoints, within 30 days.
The Strait of Hormuz handles roughly a fifth of the world’s daily oil consumption. The problem was that both sides almost immediately accused the other of violating the terms, and the situation deteriorated rapidly from diplomatic tensions into active military exchanges.
