Key insights
- Iran is reportedly seeking cryptocurrency payments for passage through the Strait of Hormuz, causing a temporary surge in crypto prices. This geopolitical development introduces uncertainty in oil shipping and could lead to increased volatility in energy markets, indirectly impacting US equities due to potential inflationary pressures and supply chain disruptions. Trump's statement adds another layer of complexity.
The Iranian regime is looking to charge fees of $1 per barrel of oil for tankers crossing the Strait of Hormuz, with payments to be made in cryptocurrency, the Financial Times reported Wednesday morning.
In the minutes after the news broke, prices on major cryptocurrencies surged.
Bitcoin (BTC-USD) rose 5% to trade above $71,700 per coin after paring earlier gains that had pushed the asset above $72,700. Solana (SOL-USD) and ethereum (ETH-USD) picked up 7% and 8%, respectively, after also giving up steeper gains earlier in the session.
No preference for which cryptocurrency the payments should be made in was reported.
Read more: How to buy bitcoin: A step-by-step guide
The demands from Iran come from Hamid Hosseini, a spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, according to the Financial Times. Tankers used to transit oil out of the Strait of Hormuz typically hold between 500,000 and 2 million barrels' worth of crude.
Each shipowner must email Iran with an accurate description of the ship's cargo, at which point Iran will dictate the fee for safe passage, the FT reported. Ships holding no cargo would be allowed to cross for free.
The FT also reported that ships in the area were told on a radio transmission, "If any vessels try to transit without permission, [they] will be destroyed." In recent weeks, Iran has used attacks on tankers and other vessels in and around the Persian Gulf as a deterrent for shipowners considering runs through the strait.
In his Truth Social post Tuesday evening declaring the ceasefire, President Trump wrote that the agreement was conditional upon a "COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz." Iran has repeatedly said it is seeking sovereignty over the strait, the world's most critical shipping lane for oil, as a condition for an end to the war that has roiled the global market.
On Wednesday morning, movement through the strait remained limited to only small movements. Arsenio Longo, the founder of maritime intelligence firm Huax, told Yahoo Finance that there's no indication yet that the announced ceasefire is triggering an immediate resumption of traffic.
"A two-week reopening may allow some selective transits, but from what we see in the data, it has not yet triggered any broad return of shipping through Hormuz," Longo said.
"The contacts we speak to locally remain quite skeptical about the stability of the situation. So my sense is: this may move sentiment faster than it moves real shipping or insurance behavior."
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Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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