Hopes of a deal to reopen the Strait of Hormuz weakened after US President Donald Trump demanded that Iran pay compensation for people killed in wars, attacks and protests. The demand came after Tehran called for compensation for its military losses and an end to sanctions, adding another obstacle to negotiations over the strategic waterway.
Markets react to rising Iran tensions
SoSoValue said the standoff is pushing oil prices higher as concerns grow over prolonged disruption around the Strait. Brent crude rose to about $88 a barrel, and WTI reached roughly $82, while the U.S. Strategic Petroleum Reserve fell below 300 million barrels to about 298.3 million, its lowest level since 1983.
SoSoValue Flash: US-Iran Compensation Standoff Elevates Oil, US SPR Breaks 300M Floor, Fed’s Hammack Signals Multiple Hikes
💥 Core Catalyst:
Geopolitically, Trump disclosed Iran demands compensation for five months of military losses, while instructing US negotiators to imbed… pic.twitter.com/Nqxgpyg3ku— SoSoValue (@SoSoValueCrypto) August 11, 2026
The report also pointed to a more hawkish tone from Cleveland Fed President Beth Hammack, who said multiple rate hikes may be needed if inflation remains sticky. At the same time, AI-related cloud spending continues to support technology stocks, although geopolitical risks are adding pressure to the market.
Prolonged Hormuz crisis could push more money toward crypto
Chainalysis estimates that Iran’s crypto ecosystem exceeded $7.78 billion in 2025, with Bitcoin withdrawals increasing during periods of domestic and geopolitical pressure. After the February 2026 US-Israeli airstrikes, about $10.3 million in crypto flowed out of Iranian exchanges between February 28 and March 2, showing how quickly on-chain activity can respond when confidence in the local financial system comes under pressure.
The current Hormuz standoff is also affecting Bitcoin in the opposite direction. Bitcoin slipped below $65,000 as oil prices rose and investors reduced exposure to riskier assets. That makes the crypto angle more complicated, as geopolitical instability can increase demand for alternative financial rails in affected economies. At the same time, the same crisis can hurt Bitcoin’s price if it triggers inflation fears, higher interest rates and a wider move away from risky assets.
Previously, Bitcoin and XRP traded higher despite rising geopolitical tensions after Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had targeted Amazon’s data infrastructure in Bahrain with cruise missiles.
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