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Markets rippled as crypto prices fell amid escalating tensions in the Strait of Hormuz. Bitcoin extended its losses on Sunday morning after President Donald Trump said the US would move to impose a naval blockade of the waterway following failed diplomacy with Iran over Tehran’s nuclear program.
In a statement on Truth Social, Trump said negotiations with Iranian officials, led by Vice President JD Vance, ended without an agreement on Tehran’s nuclear program, which he described as the “only point that really mattered.” He reiterated that Iran must not be allowed to develop nuclear weapons.
Trump said that while there had been progress on other issues, Iran remained “unyielding” regarding its nuclear ambitions.
Trump stated that the US Navy will “begin the process of BLOCKADING” ships entering and leaving the Strait of Hormuz. He said the measure is intended to counter what he called “extortion” by Iran, alleging that shipping has been endangered by the possibility of naval mines and other disruptions.
He added that allied nations would be involved and said vessels allegedly paying “illegal tolls” to Iran could be intercepted in international waters.
Trump also warned that US forces would take aggressive action against threats to shipping. He said US naval forces would move to neutralize alleged mines in the waterway and warned that any attacks on American or civilian vessels would be met with “overwhelming force.”
He further asserted that Iran’s military capacity had been largely degraded, claiming its navy, air defenses, and radar systems were no longer functional.
On-chain data indicated that the largest crypto asset dropped below $71,000 after Trump’s statements, after shedding around $2,000 in value. At press time, BTC was trading near $71,000 and remained under pressure as traders weighed whether the move signals a deeper correction amid renewed geopolitical concerns.
Altcoins also declined. Ethereum fell below $2,200, while total crypto market capitalization slipped nearly 2%, falling under $2.5 trillion.
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