Trump Says Strait Of Hormuz Will Reopen “Very Soon” as Oil Slips and Bitcoin Surges

US President Donald Trump said the Strait of Hormuz will be reopened "very soon" and warned that Iran could face a heavy strike if it reneges on any agreement. His remarks come as the United States, Iran and Oman reportedly move toward an interim arrangement to restore safer transit through the strategic waterway amid ongoing regional tensions.

Trump's Comments: In a Fox News interview, Trump said, "The Strait is going to be open very soon — or they're gonna hit very hard, and then the Strait is going to be open." He reiterated that Washington would respond strongly if Tehran backed out of a deal, and said he previously canceled a planned large-scale strike after appeals from Gulf partners, including Saudi Arabia, the UAE and Qatar.

Reported Interim Deal: Officials in Washington, Tehran and Muscat are reportedly finalizing a 60-day interim agreement that would suspend transit tolls and fees while in effect. According to reports, both sides have also agreed to clear naval mines from the channel within 30 days to restore safe passage for commercial shipping. A formal announcement was expected around Wednesday, though timelines remain subject to change.

Outstanding Demands: Tehran has publicly maintained that negotiations are bilateral between coastal states, and has set additional conditions in recent discussions, including the right to collect maritime fees, an end to what it calls a US naval blockade, and lifting of US oil sanctions. Iranian officials have warned that continuing US threats could delay any agreement with Oman.

Regional Diplomacy: Separate diplomatic efforts continue in the region. Saudi Arabia has reportedly been holding talks with Yemen's Houthi militants through Omani intermediaries to reduce escalation in the Red Sea and adjacent waters.

Market Reaction — Oil: Markets reacted to the prospect of a reopening. Brent and US benchmark oil prices fell below $75 per barrel on Wednesday as hopes grew that shipping disruptions could ease and tensions might de-escalate. Oil extended declines for a third straight session, bringing the weekly drop to more than 13%.

Market Reaction — Bitcoin: Risk assets moved in the opposite direction. Bitcoin rose above $64,000, up about 2% over the prior 24 hours, with an intraday low of $63,397 and a high of $64,467. Trading volume declined roughly 15% as investors awaited fresh US labor-market data that could provide clues about Federal Reserve policy.

Analyst Notes: Market analyst BIT observed shifts in Bitcoin option skew and suggested this could signal easing downside pressure; the firm said a stronger rally could follow if skew becomes less negative and price holds above the $62,000 support level. As always, analysts caution that option metrics are only one of many indicators and that geopolitical developments could quickly change market dynamics.

Outlook: The proposed interim deal would be limited in scope — focused on immediate safety and traffic issues — while broader political and economic demands, including sanctions relief and maritime-fee rights, remain unresolved. Observers say that despite short-term optimism that has pressured oil lower and helped lift some risk assets, lingering political demands and strong rhetoric mean the risk of renewed flare-ups in the region persists.

Reporting note: Details of the negotiations are based on reports from officials and media interviews; timelines and terms remain subject to confirmation by all parties involved.