Bitcoin holds above $65,000 as Iran-Oman deal eases Hormuz fears

Bitcoin held steady above $65,000 on Friday after Iran and Oman moved closer to a cooperation deal that eased concerns about disruptions in the Strait of Hormuz, a critical oil shipping route.

The two countries have been discussing a preliminary agreement aimed at stabilizing regional tensions. The Strait of Hormuz sees about a fifth of the world’s oil pass through it daily, so any sign of reduced conflict risk boosts investor confidence across markets, including cryptocurrencies like Bitcoin. After months of heightened tensions between Iran and Israel, plus attacks on commercial ships in the Gulf, traders have been watching for any diplomatic thaw. The latest talks between Iran and Oman offer the first concrete sign of de-escalation in months.

Bitcoin’s price jumped nearly 3% in early trading and has since stabilized around $65,500. The move mirrors gains in traditional risk assets like global stocks and oil futures, all of which have been sensitive to Middle East stability. Analysts at crypto firm Glassnode noted that Bitcoin often reacts quickly to geopolitical shifts, especially when they reduce the chance of supply disruptions in energy markets. Meanwhile, the U.S. dollar weakened slightly against other major currencies, which also tends to support Bitcoin as investors seek alternatives.

The next step will be whether the Iran-Oman talks lead to a formal agreement or at least a lasting pause in regional hostilities. If tensions continue to ease, more capital could flow into risk assets, potentially pushing Bitcoin higher. But the deal is still fragile, and any setback—like a sudden attack or failed negotiations—could reverse the gains. Traders are watching closely, and the next few days will show whether this is a short-term bounce or the start of a more sustained upward trend.