Tensions between the U.S., Israel, and Iran cooled in the early hours of Wednesday as all parties agreed to a preliminary two-week ceasefire. With Iran committing to reopen the strategic Strait of Hormuz—paving the way for broader regional de-escalation—both gold and cryptocurrency markets surged in an immediate relief rally.
Bitcoin, that was trading at $68,000 earlier on Tuesday, surged the $72,000 price mark within one hour of the ceasefire finalization. At the time of writing, the asset was trading at $72,610 with its price only rising by the minute.
Ether mimicked Bitcoin’s trajectory to grab a gain of $2,270 having risen by 4.78 percent in the last one hour.
All of the altcoins that were trading in the reds around ten hours ago are now rife with fresh gains. These inclide BNB, XRP, Solana, Dogecoin, Hyperliquid, Cardano, and Bitcoin Cash among others.
Reacting to the positive development, the crypto market cap instantly rose by 4.27 percent to claim the valuation of $2.44 trillion.
The crypto fear and index score also went from 38 to 46 showing a shift from fear to neutral in investor sentiment.
Source: CoinMarketCap
Not just crypto but other assets are also undergoing a surge at press time. Data by TradingView showed Gold price spiking by 3.34 percent to trade at $4,843.5/ troy ounce. Copper also has risen by over three percent to retail at $5.73/pound.
Natural gas and light crude oil, on the other hand, witnessed price drops. While light crude oil price plunged instantenously by 16.9 percent, natural gas cost tumbled by nearly three percent. At the time of writing, light crude oil was trading at $93.95/barrel, natural gas is retailing at $2.78/million BTUs.
About the ceasefire
U.S. President Donald Trump, earlier this week, had threatened the “destruction of a civilization” if Iran did not agree to re-open the Strait of Hormuz. The deadline of Tuesday, 8:00 PM (Eastern Time) was declared by President Trump to finalize the negotions by.
Around the decided upon time, the White House released a statement declaring the two week ceasefire. The statement credited Pakistan Prime Minister Shehbaz Sharif for mediating the development.
The state media of Iran reported that the U.S. has agreed to commit to non-aggression, the continuation of Iran’s control over the Strait of Hormiz, and the lifting of all primary sanctions.
“For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces and with due consideration of technical limitations,” said a statement signed by Iran’s Foreign Affairs Minister that was also shared by the White House.