Bitcoin fell to $71,067 on Sunday, April 12, 2026, after US-Iran peace talks in Islamabad broke down without an agreement, leading the US Navy to deploy two destroyers into the Strait of Hormuz to begin clearing Iranian mines. The cryptocurrency dropped roughly 2.5% within hours, reversing gains from earlier in the week when optimism over a two-week ceasefire had pushed Bitcoin toward $74,000.
Collapse of Talks and Military Escalation
Vice President J.D. Vance confirmed that negotiations ended without a deal, leaving Iran's nuclear program and access to the Strait unresolved. President Donald Trump announced on Truth Social that the Navy had begun “cleaning up” the Strait of Hormuz, claiming that all 28 Iranian mine-laying boats had been destroyed and lay at the bottom of the sea. U.S. Central Command confirmed that destroyers USS Frank Peterson and USS Michael Murphy had transited the waterway as part of a mine-clearing and freedom-of-navigation operation.
Iran imposed selective restrictions in mid-March, reducing daily vessel traffic from 138 to as few as four or five ships. The International Maritime Organization estimates that about 2,000 vessels, including six cruise ships and numerous oil tankers, remain stranded in the Persian Gulf along with 20,000 seafarers. The Strait handles approximately 20% of the world's crude oil supply, and global oil markets have reacted sharply, with prices spiking above $100 per barrel at earlier escalation points.
Bitcoin's Reaction and Risk-On Dynamics
Bitcoin's decline mirrored risk-asset behavior, selling off on conflict escalation and recovering on ceasefire hopes. Trump also accused Iran of demanding tolls of $1 per barrel to pass through the Strait, with some requests reportedly for payment in cryptocurrencies, including Bitcoin. Bitcoin is currently trading near $71,600, with neutral signals and mixed momentum, facing resistance around $73,500. The next move depends on whether the mine-clearing operation leads to a fully open waterway or Iran responds with further obstruction, which will also influence oil prices and U.S. stock markets on Monday morning.
International Condemnation and Outlook
NATO members including Germany, Italy, Japan, and the UK declined to participate militarily, drawing Trump's criticism as “cowards” and a “paper tiger”. Russia and China vetoed a UN Security Council resolution on April 7 that would have authorized military force to reopen the waterway. Initial reports emerged Sunday of supertankers successfully exiting the strait under US Navy escort, prompting Iranian officials to accuse Washington of violating the ceasefire. “No one paying an illegal toll will have safe passage on the open seas,” Trump stated.
Iran's delegation in Islamabad included Mohammad-Bagher Ghalibaf, Abbas Araghchi, and Ali Bagheri. U.S. representatives Steve Witkoff and Jared Kushner spent nearly 20 hours in talks before returning without a deal. Trump explicitly stated that Iran will never be allowed to possess a nuclear weapon. The crisis not only roils energy and crypto markets but also reshapes global security dynamics, with the Strait of Hormuz remaining a flashpoint for potential further escalation.