Iran Suspends Negotiations With U.S. Over Ceasefire Violations, Bitcoin Falls
Highlights
- Iran negotiators have stopped communications with the U.S. over ceasefire violations in Lebanon.
- Tehran also said it will move to block the Strait of Hormuz.
- Bitcoin has fallen below $72,000 following this development.
Tensions in the U.S.-Iran war are again escalating, with Iran stopping communications with the U.S. over ceasefire violations. Bitcoin has notably fallen below the psychological $72,000 level on the back of this development, with a peace deal again looking unlikely anytime soon.
Iran Stops Negotiations With the U.S., Bitcoin Falls Below $72,000
According to a CNBC report, Iranian negotiators will stop corresponding with the U.S. through intermediaries in retaliation for ongoing ceasefire violations. Iran has also moved to block the Strait of Hormuz as tensions between the U.S. and Iran escalate again.
Bitcoin sharply dropped on the back of this development, falling below $72,000. The BTC price is currently trading at around $71,500, down almost 3% from an intraday high of above $73,000, according to TradingView data.
It is worth noting that the ceasefire violations refer to Israel’s strikes on Lebanon. Iran has previously reiterated that Lebanon is part of the ceasefire it agreed to with the U.S. This represents a significant setback to a potential U.S.-Iran deal and comes just a day after U.S. President Donald Trump said Iran is seeking a deal.
The crypto market had also crashed earlier in the day after the U.S. confirmed that it carried out military attacks against Iranian targets. Iran responded with threats of a counterattack in retaliation for the U.S. strikes.
Oil Prices Rise With Latest Setback
Oil prices have also climbed on the back of Iran’s move to cut communications with the U.S. Brent crude oil futures are up almost 6%, rising to $97, while WTI oil futures have climbed 7%, reaching $93. The rise in oil prices is also putting pressure on Bitcoin and other crypto prices as inflation concerns over rising energy costs mount.
It is worth noting that BTC was also experiencing significant volatility earlier in the day as Michael Saylor’s Strategy sold Bitcoin. The company sold 32 BTC for $3.2 million, its first sale since 2022.
Meanwhile, amid the latest setback to a U.S.-Iran peace deal, market participants have increased their bets against a deal happening anytime soon. Polymarket data shows only a 23% chance of a peace deal by June 30, down from above 50% about a week ago.
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