Bitcoin slides as Trump reinstates Iran blockade, proposes Hormuz cargo fee

Bitcoin fell more than 2% on Monday after President Donald Trump announced the reinstatement of what he called the "Iranian Blockade" in the Strait of Hormuz and proposed a 20% cargo fee on all ships transiting the waterway, rattling risk assets and sending oil prices sharply higher.

Trump Declares US 'Guardian of the Hormuz Strait'

In a Truth Social post on Monday, Trump declared the Strait of Hormuz "is OPEN, and will remain OPEN, with or without Iran," while announcing that the United States would resume blocking Iranian shipping through the corridor. He also said the U.S. would assume the title of "THE GUARDIAN OF THE HORMUZ STRAIT" and proposed that all cargo transiting the waterway pay a 20% fee to cover security costs.gcaptain+1

"The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT,' but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World," Trump wrote. The White House has not released a legal framework or guidance on how such charges would be collected.gcaptain

The announcement pushed Brent crude up more than 4% to above $79 a barrel, while U.S. benchmark WTI rose to roughly $74.50, according to Euronews and the Times of India. Major U.S. stock indexes also ended the session lower, with CNBC parent company reporting that equities fell on the blockade news.euronews+2

Bitcoin Slides but Holds Key Support

Bitcoin slipped toward $62,000 as the renewed geopolitical tensions triggered a broad risk-off move across digital assets. The decline mirrored a pattern seen on July 8, when the initial collapse of the U.S.-Iran ceasefire sent Bitcoin to $61,500.tradingview+3

Despite the drop, the cryptocurrency appeared to stabilize above key support levels. Analysts have pointed to the $61,000–$63,000 zone as a critical area that has held through multiple rounds of Hormuz-related volatility since early July. Ethereum continued to trade near $1,800, while other major altcoins including Solana and XRP posted modest losses.cryptorank+2

ETF Flows Signal Potential Turnaround

The sell-off comes against a backdrop of improving institutional flows into cryptocurrency funds. After eight consecutive weeks of outflows totaling more than $8.2 billion from U.S. spot Bitcoin ETFs, according to the Bitcoin Foundation, recent sessions have shown signs of a reversal. On July 3, the funds recorded $221.7 million in inflows — their largest single-day intake in two months — ending a 10-day outflow streak, per CoinDesk.bitcoinfoundation+1

Fidelity's FBTC led that session with $165.96 million, followed by ARK 21Shares' ARKB at $91.84 million. The return of institutional buying has provided a floor under Bitcoin prices even as geopolitical risks mount, with Yahoo Finance noting that the cryptocurrency "starts to see some relief from renewed ETF inflows".coindesk+1

Whether the stabilization holds may depend on how markets digest Trump's latest escalation — and whether the proposed cargo fee moves beyond a social media post into formal policy.