Key facts
- US President Donald Trump announced a deal with Iran to be signed Sunday, aiming to reopen the Strait of Hormuz.
- The deal reportedly includes a 60-day ceasefire extension between the US and Iran.
- Pakistan is mediating the talks and indicated an agreement could be reached within 24 hours.
- Iran has not confirmed the Sunday signing date, creating uncertainty about the timeline.
- The Strait of Hormuz blockade has impacted global oil and LNG supply, affecting asset prices.
US President Donald Trump announced on Saturday that a deal with Iran is scheduled to be signed on Sunday, which would immediately reopen the Strait of Hormuz to all traffic. Trump stated on Truth Social that the deal would be signed on Sunday, and following the signing, the Strait of Hormuz would be open.
Pakistan, which has been mediating the talks, also indicated that an agreement could be reached within 24 hours. Pakistani Prime Minister Shehbaz Sharif stated on X that Pakistan is preparing for the electronic signing of the peace deal, followed by technical-level talks next week. The deal is expected to extend the current ceasefire between the US and Iran for 60 days.
However, Iran has not confirmed the Sunday signing. Iranian Foreign Ministry spokesperson Esmaeil Baghaei told state media earlier that the memorandum of understanding would not be signed on Sunday but could happen "in the coming days." The naval blockade of the Strait of Hormuz has choked 20% of the world's oil and liquefied natural gas supply, contributing to higher global asset prices and negatively impacting crypto markets.
Analysts suggest that a peace deal will benefit cryptocurrencies. Crypto analyst Michaël van de Poppe anticipates that liquidity will return to risk-on assets like Bitcoin following the deal, potentially leading to positive ETF flows. He noted that recent outflows from digit