Crypto Market Recovers as Expert Warns U.S. Easing of Iran Sanctions Won’t Stabilize Oil Prices

The crypto market has rebounded today, led by Bitcoin, which had crashed below the psychological $70,000 level yesterday. This follows the U.S. decision to ease sanctions on Iranian oil, a move which experts have warned is unlikely to stabilize oil prices.

Crypto Market Climbs as U.S. Eases Sanctions On Iranian Oil

The total crypto market cap reached as high as $2.4 trillion today, according to TradingView data. Bitcoin has led this recovery, rising above $70,000 to an intraday high of $71,000. The leading crypto had crashed below $70,000 yesterday amid reports that the U.S. was preparing to deploy ground troops in Iran.

Today’s crypto market rebound follows the U.S. decision to ease sanctions on Iranian oil to curb volatile oil prices. The U.S. Treasury Department announced that this authorization will be in place until April 19. U.S. Treasury Secretary Scott Bessent noted that this move would bring about 140 million barrels of oil to global markets.

However, market expert Richard Haass warned that the oil that the U.S. is allowing Iran to sell is too small to stabilize energy markets. He added that, on the other hand, it is large enough to help Iran fight the war and raise the price of ending it.

The crypto market continues to react to rising oil prices and has seen relief every time the U.S. takes a move to stabilize oil prices, even as tensions with Iran escalate. CoinGape reported yesterday that the U.S. had deployed more troops to the Middle East, a development that crypto prices reacted negatively to.

The U.S.-Iran conflict has had far-reaching consequences, with rising oil prices heightening inflation risks. With the war threatening to drive inflation higher, market participants are now pricing in the possibility of a Fed rate hike this year.

U.S. Says It Has Weakened Iran’s Threat To Strait of Hormuz

In an X post, Admiral Brad Cooper, the head of the U.S. Central Command, said that they have degraded Iran’s ability to threaten the Strait of Hormuz, which marks a positive for the crypto market. Iran’s closure of the Strait has largely contributed to rising oil prices, as it is a chokepoint for around 20% of the global oil supply.

Meanwhile, Cooper also mentioned that the U.S. forces remain on plan to eliminate Iran’s ability to project meaningful power outside its borders. It is worth noting that crypto prices have also rebounded today as U.S. President Donald Trump signaled that the war could end soon.

In a Truth Social post, the president said they are getting close to meeting their objectives as they consider winding down their military efforts in the Middle East with respect to Iran. However, crypto traders still see the U.S.-Iran war dragging on until May. Polymarket data show a a 42% chance of a U.S.-Iran ceasefire by May 31.