Bitcoin reverses initial losses to move higher

The world’s largest crypto rose sharply earlier this week after the U.S. and Iran’s ceasefire agreement

Bitcoin reversed initial losses to move slightly higher on Thursday, after a fragile U.S.-Iran ceasefire was strengthened after Israel agreed to negotiate, removing a key contention point between all warring parties.

The world’s largest crypto rose sharply earlier this week after the U.S. and Iran’s ceasefire agreement and openness to in-person peace talks. But the ceasefire appeared frayed by Thursday, while the U.S. president also kept up a rhetoric against Iran.

At 21:41 GMT, Bitcoin was up 1.1% to $72,349.8.

Beyond the Iran war, focus also remained on a U.S. bill aimed at offering more regulatory clarity for the crypto industry– the CLARITY act. But the bill was far from gaining enough support to clear Congress.

Market focus was squarely on the status of the agreed upon ceasefire, especially after Tehran said both the U.S. and Israel had violated several parts of its 10-point proposal.

Still, Iran has halted oil tanker traffic through the Strait of Hormuz, while the U.S. president said that the country’s military would remain near Iran until a “real agreement” is reached.

Iran will demand that shipping companies pay tolls in crypto for oil tankers passing through the Strait of Hormuz, the Financial Times reported.

The FT cited comments from Iran’s Oil, Gas, and Petrochemical Products Exporters’ Union, and reported that vessels attempting to cross Hormuz will be assessed by Iran and be subject to a Bitcoin fee.

Iran effectively blocked the strait – which supplies around 20% of the world’s oil consumption – in response to U.S. and Israeli hostilities. Washington has repeatedly called on Tehran to reopen the passage as part of a ceasefire deal.