Bitcoin climbed back above $65,000 as diplomatic reports suggest Iran and Oman are close to a deal easing tensions over the Strait of Hormuz. Traders are pricing in the shift before any agreement is signed, lifting bitcoin and other risk assets in early trading this week.
Crypto markets opened the week higher, with bitcoin rising 0.54% to $65,209 while ether gained 0.86% to $1,925. That kept crypto in step with other risk assets as Nasdaq 100 index futures rose 0.45% on speculation that Iran is ready to strike a deal with Oman over the Strait of Hormuz.
Iran and Oman near a Hormuz shipping deal
Diplomats in Tehran and Muscat are reportedly in the final stages of negotiations over the Strait of Hormuz, the narrow waterway that carries a large share of the world's oil and liquefied natural gas. Iranian Foreign Ministry spokesperson Esmaeil Baqaei confirmed in early August 2026 that the two sides are finalizing terms. The emerging framework reportedly includes a 60-day interim arrangement to trial normalized shipping access before any permanent deal locks in.
However, Iranian officials have stressed that signing an agreement with Oman won't automatically reopen the Strait. Additional conditions, likely tied to US sanctions posture or broader diplomatic concessions, would still need to be met.
Why the Strait matters to Bitcoin
The Strait of Hormuz is roughly 21 miles wide at its narrowest point. Earlier in 2026, escalating tensions disrupted traffic through the waterway, sending oil prices higher and pulling risk assets down across the board.
As those fears recede, the same institutional flows that punished bitcoin on the way down are now lifting it on the way back up. Still, the deal remains unsigned, and traders are pricing in an outcome that diplomatic language has explicitly left conditional.
Altcoins wait on bitcoin's next move
Capital remains concentrated in bitcoin, keeping the altcoin season indicator subdued. CoinMarketCap's gauge sits at 37/100, down from last week's peak of 51/100, with meaningful rotation into smaller tokens likely contingent on bitcoin breaking out of its current range toward $68,000 to $72,000.
Meanwhile, liquidations across the crypto market fell 32% to $85 million, a sign the market is stabilizing rather than chasing momentum.
Sources: CoinDesk, Crypto Briefing
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