- Trump stated Iran is in a “state of collapse” and wants the Strait of Hormuz reopened.
- The US President posted that Iran had privately told the US about its internal troubles.
- There has been no official word from Iran or White House regarding Trump’s claims.
The US President Donald Trump says Iran is in a “state of collapse” and is urging the US to reopen the crucial Strait of Hormuz, with tensions between the two countries still on the rise. On Truth Social, Trump posted that Iran had privately told the US about its internal troubles, indicating there are leadership problems in Tehran.
Despite the significance of the claim, there’s been no word from Iran, no proof of how the message was sent either, and no immediate response from the White House or Pentagon.
At the same time, Iran’s oil exports have been severely restricted due to blockades. The conflict at sea has caused ship seizures, tankers being rerouted, and insurance costs climbing.
In fact, Iran has condemned the US actions (such as tanker seizures) as violations of international law, adding more fuel to the diplomatic fire. As such, ongoing blockades have disrupted up to 10 million barrels per day.
Reports indicate that US officials are still evaluating Iran’s latest proposal, which includes reopening the strait in exchange for easing blockades, but the disagreements remain unresolved.
In fact, the entire situation is still very much up in the air and full of contradictions.
Iran previously stated reopening the strait was impossible under current conditions, although more recent proposals suggest Tehran may reopen it if the US lifts its naval blockade. Trump has reportedly turned down parts of Iran’s latest offer, particularly anything that would push nuclear talks further down the road.
Impact on Crypto
If what Trump is saying turns out to be true, and taking into consideration that the Strait of Hormuz handles about 20% of global oil supply, reopening it would likely reduce oil prices and ease inflation.
This matters a great deal for crypto because lower inflation frees up liquidity, and looser financial conditions push the capital into risk assets.
If oil drops and inflation cools, the dollar often weakens, and risk assets like crypto tend to rise. Crypto has historically moved opposite the dollar, so a weaker USD is usually a good sign for BTC, ETH, and other cryptocurrencies.
Related: US-Iran Talks Stall as Crypto, Stocks, and Oil Markets React
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