Hormuz reopening lifts Bitcoin and risk appetite

Iran said on Friday that the Strait of Hormuz was open to commercial shipping during the ceasefire, easing pressure on one of the world’s most sensitive energy chokepoints and helping lift Bitcoin towards $78,000 as investors moved back into risk assets. The market reaction was swift across oil, equities and cryptocurrencies, though the rebound also reflected wider hopes that hostilities involving the US, Israel and Iran may be moving towards a diplomatic phase rather than a full military escalation.

Tehran’s message was delivered by Foreign Minister Abbas Araqchi, who said commercial vessels could pass through the waterway under a coordinated route set by Iran’s Ports and Maritime Organisation. That wording was enough to reassure traders after weeks of disruption around a sea lane that carries a large share of the world’s oil and gas shipments. Yet the opening was not presented as an unrestricted return to normal traffic. Reuters and other outlets reported that ships would still need to follow Iranian instructions, while military vessels remained excluded and questions persisted over the role of the Islamic Revolutionary Guard Corps in approving passage.

Bitcoin rose as geopolitical fears receded. Bloomberg reported the cryptocurrency climbed as much as 3.8 per cent to $78,155 on April 17, while the Wall Street Journal said it traded around $76,571 earlier in the session, its strongest level since early February. That means the claim that Bitcoin “jumped to $78,000” is broadly supported by intraday market reporting, although the move appears to have built through the trading day rather than occurring as a single instant reaction. The gain also came after Bitcoin had already been recovering on signs of a ceasefire extension and improving sentiment in global markets.

Oil prices told the clearest story of investor relief. Reuters said Brent crude fell about 13 per cent to $86.52 a barrel and US West Texas Intermediate dropped to $81.19, both the lowest since March 10. Lower oil prices reduced immediate concerns about supply disruption and inflation pressure, helping support equities and other assets that tend to benefit when traders feel more confident about growth and monetary conditions. Canada’s main stock index rose more than 1 per cent, while other markets also advanced on the view that a key escalation risk in the Gulf had been contained, at least for now.

The backdrop remains fragile. The Hormuz announcement came amid a broader ceasefire arrangement linked to fighting involving Iran, the US, Israel and Hezbollah in Lebanon. Washington has signalled optimism about a possible deal with Tehran, but it has not removed all pressure. Reports indicated that a US naval blockade tied to Iranian ports and naval movements remained in place even after Tehran said the strait was open to commercial vessels. That distinction matters because it shows the market rally was driven by reduced fear, not by a full settlement of the conflict or a complete restoration of normal shipping conditions.

Shipping groups and maritime officials have also responded with caution rather than celebration. Industry representatives welcomed the reopening signal, but stressed that unresolved issues remain, including the safety of navigation, the possibility of sea mines, the legal status of Tehran’s routing instructions and whether shipowners will feel confident enough to resume ordinary transits at scale. The International Maritime Organization has indicated that compliance with international navigation law still needs to be assessed. That means the phrase “completely open” carries political and market value, but may not yet translate into a fully normal operating environment for global trade.

For crypto investors, the move fits a familiar pattern. Bitcoin often trades as a high-beta expression of market confidence, falling when conflict intensifies and bouncing when the prospect of de-escalation improves. Analysts cited by the Wall Street Journal said the token had been dealing with a series of pressures, including sanctions fears and broader uncertainty tied to the Middle East. Friday’s advance suggested traders were once again willing to price in a more benign backdrop, though the speed of the move also underlined how exposed digital assets remain to headline risk.