While Bitcoin remains range-bound at its upper levels, the cryptocurrency market faces heightened risks amid shifting global dynamics. The upcoming meeting between Trump and Xi on May 14–15 has drawn intense focus, but Iran continues to command headlines. Despite Trump’s angry response to Sunday’s developments, the U.S. has yet to take concrete action. Today, Iran made a significant announcement that could impact global markets.
Iran’s strategic maneuver in the Strait of Hormuz
According to the Iranian Tasnim news agency, Iran has deployed submarines with deep-diving capabilities in the Strait of Hormuz. Blocking this vital waterway previously triggered a sharp spike in oil prices, and Iran is known to leverage both the strait’s energy transit and its undersea internet cables for political pressure. The initiation of submarine operations in this region is widely seen as a major step to deter or respond to potential U.S. military action.
White House maintains calm as oil stays above $100
Despite oil prices holding steady above triple digits, White House Senior Advisor Kevin Hassett is urging calm. Hassett, a leading candidate for the Federal Reserve chair and a key architect of Trump’s economic policy, addressed the situation in a CNBC interview. He reassured viewers that there is no need for panic, emphasizing the resilience of both markets and policy responses.
In his remarks, Hassett highlighted that the stock market continues its strong performance on the back of better-than-expected earnings, with core inflation averaging 2.6% over the past six months. Heading into the Trump-Xi summit, the administration remains confident, while strategic patience persists regarding Iran, given that country’s severe economic troubles.
Kevin Hassett emphasized in his CNBC appearance that “stocks are performing well thanks to earnings exceeding expectations. Micro-level inflation is cooling, and over the last six months, core inflation averaged 2.6%. We are entering the Trump-Xi talks with confidence. There is little urgency with Iran since its economy is near collapse. It’s unlikely that high energy prices will cause a recession in the U.S. I also don’t believe artificial intelligence should require bureaucratic approval from a new, massive agency. If I were Fed chair, I would manage past the supply shock.”
Meanwhile, Iran’s strategic use of the Strait of Hormuz continues to unsettle markets. Each move near these choke points often leads to volatility both in energy and cryptocurrency prices, especially with BTC remaining sensitive to geopolitical shocks.
The tension in the strait is also a reminder of the delicate nature of global economic interdependence. Iran’s stance suggests it will continue to use maritime and digital infrastructure as leverage in its dealings with the West.
Market participants are watching closely as the geopolitical chess game unfolds. Even brief disruptions in the Strait of Hormuz can send shockwaves across oil and crypto markets. Quick market reactions are often seen in $BTC and related assets during such escalations.
As Trump and Xi prepare for their meeting, the outcome could influence not just broader markets, but also ongoing negotiations regarding Iran. Both oil and digital asset investors are prepared for volatility.
Despite the heightened rhetoric and military maneuvers, U.S. economic advisors project stability, underscoring the robustness of domestic markets and downplaying concerns over an imminent recession linked to energy prices.
In summary, with Iran raising the stakes in the Strait of Hormuz and oil prices lingering above $100, the crypto sector, especially $BTC, faces a week shaped by political decisions at the highest level.
