Brent oil erases wartime gains as Hormuz reopening boosts supply and lifts Bitcoin

Brent crude has tumbled below $72.48 per barrel, completing one of the most dramatic round trips in oil market history. Just three months ago, the same benchmark was trading above $126 after Iran shut down the Strait of Hormuz. Now, a US-Iran interim agreement has reopened the waterway, and the wartime premium that sent energy traders into a frenzy is evaporating faster than a puddle in Riyadh.

The decline represents a staggering collapse from crisis highs, one that’s reshaping risk sentiment across asset classes. Bitcoin, for its part, climbed roughly 2% to around $65,844 on the news, riding the same wave of relief that’s pulling crude prices down.

From $126 to $72: the anatomy of a collapse

Here’s the timeline. Iran closed the Strait of Hormuz on February 28 amid escalating US-Iran conflict. Brent crude blew past $100 on March 8 and eventually peaked at $126, marking the largest disruption to global oil flows since the 1970s.

The strait handles roughly 20% of global oil trade. Then came the deal. Around June 14-15, the US and Iran announced an interim agreement authorizing the strait’s reopening. Brent dropped over 4% almost immediately, falling toward $83. The selling didn’t stop there, pushing prices below $80 and eventually under the $72.48 level that now has traders recalibrating their entire second-half outlook.

Goldman Sachs wasted no time revising its forecasts. The bank now targets $80 for Brent in Q4 2026 and a $75 average for 2027.

Why crypto is catching the tailwind

Lower oil prices tend to ease inflation expectations. Easier inflation expectations tend to make central bankers less hawkish. Less hawkish central bankers tend to make risk assets more attractive. This is the chain reaction that pushed Bitcoin to a two-week high.

Top crypto assets posted weekly gains alongside the oil selloff, with the broader market leaning into what analysts are calling a risk-on shift. Bitcoin’s move to approximately $65,844 isn’t massive in isolation. But the context matters: crypto had been stuck in a holding pattern while energy markets dominated macro headlines. The Hormuz resolution effectively removed a ceiling that had been capping risk appetite for months.

What investors should actually watch from here

Industry experts are flagging that full supply normalization could take weeks to months. There are logistical backlogs, rerouted shipments, and contractual tangles that don’t resolve overnight just because a diplomatic handshake happened.

That means oil prices could bounce around significantly in the near term. Any hiccup in the normalization process could send crude back toward $80 or higher in a hurry.

Investors watching both markets should keep their eyes on two things: the pace of actual oil flow normalization through the strait, and whether the inflation relief translates into concrete shifts in central bank rhetoric. The first will determine if Brent stabilizes near current levels or whipsaws back up. The second will determine if Bitcoin’s rally has a foundation or is just a sugar rush from one good headline.

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