Strait of Hormuz: Trump Rejects Iran’s Offer, Oil Prices Surge

Tensions are rising around the Strait of Hormuz after Trump refused to accept an Iranian proposal to reopen the maritime route before any progress is made on the nuclear issue. This position keeps pressure on Tehran and is already shaking global markets. Oil reacted sharply, jumping to nearly $120 per barrel, while Bitcoin and Ethereum fell in a constrained liquidity environment. Investors are now watching the impact of this crisis on energy, the dollar, and risk assets, including crypto.

Trump Keeps Pressure on Iran

As tensions between China and the United States intensify on the economic and financial fronts, a new point of friction is emerging for Washington, this time in the Middle East, around the Strait of Hormuz.

In statements provided to Axios, Trump wants to maintain the naval blockade until Tehran accepts an agreement addressing U.S. concerns over its nuclear program. Iran reportedly proposed reopening the Strait of Hormuz before resuming nuclear talks later. However, Trump rejects this sequence, as he believes it would weaken Washington’s leverage.

Moreover, the U.S. president presents the blockade as a central tool in the power struggle. According to the reported details, he believes this pressure is more useful than immediate military action to push Iran toward an agreement on its nuclear program, stating:

The blockade is more effective than bombing. They are choking. And it’s going to get worse for them. They cannot have a nuclear weapon.

Donald Trump, President of the United States. Source: Axios.

In addition, according to the same report, U.S. Central Command (CENTCOM) had nevertheless prepared a scenario for limited strikes against Iranian infrastructure. For now, Trump has reportedly not issued any military order.

This strategy aims to push Iran back to the negotiating table. Trump says Tehran is seeking a settlement to loosen the economic squeeze. He directly links the lifting of the blockade to nuclear guarantees. As a result, he places the Strait of Hormuz at the center of a diplomatic, economic, and security standoff.

Oil Prices Surge as Markets Watch the Strait of Hormuz

Economically, the surge accelerated following Trump’s statements to Axios. Oil reacted sharply because any disruption to maritime traffic can weigh on supply and transport expenses. Brent crude jumped 7.3% to reach $119.45. This increase reflects fears of a lasting shock, as refiners, carriers, and importing countries are already monitoring the risk of renewed price pressures.

Oil can also reignite inflationary pressures. A prolonged rise in energy prices increases business costs, makes transportation more expensive, and weighs on households. In this context, the Fed had already illustrated the caution of central banks: it had kept rates between 3.5% and 3.75% for the third time to contain price pressures. This stance confirmed that liquidity remained very constrained, a factor that was also weighing on risk assets.

This mechanism also affects crypto. After the Fed’s announcement, Bitcoin fell toward $75,100, while Ethereum quickly slipped below $2,300. These moves show that digital assets remain sensitive to financing costs, the dollar, and monetary policy expectations.

In the short term, the market will mainly watch two signals: the duration of the blockade and Iran’s response. If a diplomatic channel reopens, pressure on oil could gradually ease. However, if the deadlock around the Strait of Hormuz continues and geopolitical tensions intensify, Bitcoin and Ethereum could remain under pressure. Investors often favor caution when inflation rates and international uncertainty tighten simultaneously.