Bitcoin recovers from sharp decline, stocks erase 2% slide on Iran shipping route assurances

Markets reversed course on Thursday as easing fears around a కీల shipping route helped calm investors following an earlier spike in volatility.

After surging overnight, U.S. crude prices dropped sharply, falling nearly $6 per barrel at one stage. The decline came after reports that Iran is working with Oman on a plan to coordinate ship movements through the Strait of Hormuz, a vital corridor for global oil supply.

Equities responded positively to the news. The Nasdaq, which had opened with losses of around 2%, recovered most of the decline as concerns over potential supply disruptions began to fade.

WTI crude had earlier rallied toward $115 per barrel after President Donald Trump pledged to continue aggressive action against Iran, but later reversed, shedding roughly $5 following the shipping update.

Crypto markets also reflected the shift in sentiment. Bitcoin traded near $66,700, down about 3% over the past 24 hours, while ether hovered around $2,060 with similar losses. Although both assets trimmed some of their earlier declines, they remained under pressure on the day.

Iranian officials framed the proposed plan as a coordination mechanism rather than a move to control the waterway. Deputy Foreign Minister Kazem Gharibabadi said maritime traffic through the strait should be managed in collaboration with coastal states like Iran and Oman to ensure safety. He stressed that the effort is intended to support smooth transit and enhance services, not restrict passage.

The update follows remarks from Trump late Wednesday, when he warned of a forceful U.S. response against Iran in the coming weeks and suggested the Strait of Hormuz would “open naturally” once the conflict subsides.

Bitcoin initially fell after those comments and continues to trade roughly 2% lower over the past day, broadly mirroring declines in crypto-related stocks such as Coinbase and Robinhood