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President Donald Trump is publicly souring on a deal with Iran that was supposed to reopen the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passes on any given day. What was described as a “largely negotiated” agreement just weeks ago now looks increasingly fragile, with Trump calling Iran “dishonorable” and demanding tougher terms.
From “largely negotiated” to “dishonorable”
On May 23, 2026, Trump told reporters that an agreement with Iran “has been largely negotiated,” framing the reopening of the strait as a centerpiece of the accord. The tone was cautiously optimistic.
Fast forward to June 12, 2026, and the mood had shifted dramatically. Trump labeled Iranian state media reports about the negotiations as “inaccurate” and called Iran “dishonorable” for how they characterized the discussions publicly.
His demands have also hardened. Trump is now insisting that the Strait of Hormuz remain open with “no tolls for unrestricted shipping traffic in both directions.” He’s also pushing for firmer negotiations on Iran’s nuclear capabilities.
Oil above $100, gas above $4
The real-world consequences of the strait’s closure are already biting consumers. Oil prices have pushed above $100 per barrel, and US gasoline prices have climbed above $4 per gallon.
The broader US-Israel conflict with Iran that escalated in early 2026 provides the backdrop for all of this. The crisis originates from a military campaign led by the US and Israel against Iran, which intensified in February 2026. As tensions rose, Iran responded by imposing a de facto blockade on the strait. Negotiations have included mediation by various nations, including Pakistan and Qatar, and have focused on establishing a ceasefire, reopening the strait, offering sanctions relief to Iran, and limiting the nation’s nuclear capabilities.
What this means for crypto investors
Bitcoin’s correlation with geopolitical risk events has strengthened considerably during this crisis. In May 2026, Bitcoin saw upward price movement that aligned with positive signals about the Iran deal’s progress.
Trading platforms are reflecting this new reality. Hyperliquid, the decentralized perpetuals exchange, has seen increased trading activity correlated with these geopolitical developments. Oil futures trading on the platform has spiked alongside the diplomatic back-and-forth, suggesting that crypto-native traders are actively positioning around traditional commodity narratives using DeFi infrastructure.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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