Global financial markets rallied sharply after the United States and Iran announced an agreement to end hostilities and reopen the strategic Strait of Hormuz, easing geopolitical tensions and boosting investor sentiment across asset classes.
Bitcoin rose to its highest level in nearly two weeks, climbing about 3 percent in early Asian trading. The world’s largest cryptocurrency was trading near $65,400 by 9:30 a.m. Singapore time, according to Bloomberg and Al Sharq.
Ether, the second-largest cryptocurrency by market capitalisation, also gained as much as 3.7 percent to $1,731, while smaller digital assets including Solana and XRP recorded even stronger advances, reflecting renewed appetite for risk assets.
The rally in crypto markets came as traditional safe-haven and commodity markets reacted strongly to the agreement. Gold prices surged more than 2 percent, reaching their highest level since June 9, as investors adjusted positions following the easing of geopolitical risk premiums.
Spot gold climbed 2.5 percent to $4,322.87 per ounce, while US gold futures for August delivery rose by a similar margin to $4,344.80. Analysts attributed the increase to heightened volatility in energy markets and shifting expectations over inflation and interest rates.
Oil prices, meanwhile, fell sharply by more than 4 percent after the announcement, as markets priced in the reopening of the Strait of Hormuz, one of the world’s most critical energy transit routes. US crude futures were reported at $80.25 per barrel.
The easing of tensions also weighed on the US dollar, which slipped to a 10-day low as investors moved away from safe-haven assets and reassessed global risk conditions.
Financial analysts said the agreement between Washington and Tehran marked a significant turning point for global markets, particularly after months of uncertainty that had driven oil prices higher and fueled inflation concerns worldwide.
Prior to the agreement, the partial disruption of flows through the Strait of Hormuz had contributed to rising energy costs, reinforcing expectations that central banks would maintain higher interest rates for a longer period.
With tensions now easing, markets are recalibrating expectations, with investors closely watching whether the diplomatic breakthrough will hold and translate into longer-term stability across energy, currency, and commodity markets.
