Key facts
- President Donald Trump stated the U.S. will likely control and run the Strait of Hormuz.
- Trump suggested the U.S. should be reimbursed for its role in guarding the vital waterway.
- Iran's military command warned against unauthorized U.S. transit and cooperation with the U.S.
- Iran's Revolutionary Guards stated that ending U.S. military interventions is necessary to restore shipping traffic.
- Brent crude oil prices climbed above $79 per barrel.
- The crypto market experienced a $20 billion wipeout, with Bitcoin falling over 3%.
President Donald Trump stated on Monday that the United States is "taking over" the Strait of Hormuz and that countries "must pay" for its defense, amid escalating tensions and disruptions to shipping in the vital waterway. Brent crude oil prices extended gains above $79 per barrel following the remarks, contributing to a broader selloff in crypto markets, with Bitcoin falling over 3% and the overall market losing $20 billion.
Trump indicated that the U.S. would likely control and run the strait, acting as its "guardian angel" and expecting reimbursement. He also issued a warning to Iran, stating that U.S. forces carried out significant overnight strikes destroying key Iranian military equipment. Iran's military command responded by warning against unauthorized U.S. transit and any cooperation from regional countries, with the Revolutionary Guards asserting that ending U.S. military interventions is necessary to restore shipping traffic.
The exchange of strikes and heightened tensions over the Strait of Hormuz, a critical chokepoint for global energy and commodity shipments, led to oil prices climbing nearly 4%. Iran's declaration of the strait being closed was rejected by the U.S. Central Command. The market turmoil resulted in approximately $40 million in liquidations across various cryptocurrencies, affecting around 73,000 traders.