US Navy enters Strait of Hormuz to clear Iranian mines, Bitcoin falls 2.5%

Bitcoin fell to $71,067 on Sunday after U.S.-Iran peace talks in Islamabad collapsed without a deal and the U.S. Navy moved destroyers into the Strait of Hormuz to begin clearing Iranian mines.

Diplomacy Ends, Naval Mine-Clearing Begins

Vice President J.D. Vance said the negotiations ended without an agreement, with Iran’s nuclear program and access through the Strait of Hormuz remaining unresolved.

President Trump announced on Truth Social that the Navy had started clearing the Strait of Hormuz. U.S. Central Command confirmed that the destroyers USS Frank Peterson and USS Michael Murphy transited the waterway as part of a mine clearance and freedom-of-navigation operation.

Trump said all 28 of Iran’s mine-laying boats had been destroyed and were at the bottom of the sea.

Bitcoin Drops After Announcements

Bitcoin’s decline of roughly 2.5% within hours of the announcements tracked the breakdown in diplomacy rather than the operational progress of the naval mission.

Earlier in the week, Bitcoin had climbed toward $74,000 on optimism that a two-week ceasefire between Washington and Tehran might hold. That optimism faded once the Islamabad talks ended without an agreement.

Strait of Hormuz Disruption and Shipping Impact

The Strait of Hormuz carries approximately 20% of the world’s crude oil supply. In mid-March, Iran imposed a selective restriction that reduced daily ship traffic from 138 vessels to as few as four or five.

The International Maritime Organization estimates that roughly 2,000 ships, including six cruise liners and numerous oil tankers, remain stranded in the Persian Gulf, along with 20,000 seafarers.

Oil Prices React; Crypto Mirrors Risk Signals

Global oil markets have responded sharply to the disruption, with prices spiking above $100 per barrel during prior escalation points in the conflict. Bitcoin has tracked those moves, selling off on escalation signals and recovering briefly on ceasefire news.

Trump also accused Iran of charging tolls to pass through the Strait, reportedly $1 per barrel, with some demands for payment in cryptocurrency, including Bitcoin.

Talks Details and International Response

Iran’s negotiating team in Islamabad included Mohammad-Bagher Ghalibaf, Abbas Araghchi, and Ali Bagheri. Trump said his representatives, including Special Envoy Steve Witkoff and Jared Kushner, spent nearly 20 hours in talks before returning without a deal, crediting Pakistani Field Marshal Asim Munir and Prime Minister Shehbaz Sharif with facilitating the session.

Trump said Iran will never be allowed to possess a nuclear weapon, adding that the nuclear disagreement outweighed progress on other issues discussed during the Islamabad session.

NATO members, including Germany, Italy, Japan, and the United Kingdom, declined to participate militarily. Trump described them as “cowards” and a “paper tiger.” Russia and China vetoed a UN Security Council resolution on April 7 that would have authorized military force to reopen the waterway.

Developments at Sea and Market Snapshot

Reports emerged Sunday morning that supertankers were exiting the Strait under U.S. naval escort. Iranian officials accused Washington of violating the ceasefire by entering the Strait without coordination.

Trump said: “No one who pays an illegal toll will have safe passage on the high seas.”

Bitcoin was trading at $71,587 on Sunday morning, with a market cap of $1.43 trillion and a 24-hour trading volume listed as part of the market update in the original report.

The Crypto Fear and Greed Index was at 16, indicating “Extreme Fear.”