Bitcoin Drops, Oil Surges as Trump Prepares to Extend Strait of Hormuz Blockade

Bitcoin’s attempt to overcome $78,000 ahead of today’s FOMC meeting was halted in its tracks, perhaps due to the latest reports on the war against Iran, and the asset dipped by $1,500 in minutes.

At the same time, oil prices surged once again, with USOIL jumping to $105 for the first time since April 13. This came shortly after reports emerged claiming that the US President Donald Trump had discussed with US oil companies the possibility of extending the naval blockade of the Strait of Hormuz.

BREAKING: US oil prices extend gains to $105/barrel as President Trump prepares to extend the US “blockade” of the Strait of Hormuz for months. pic.twitter.com/RIuUti8xMt

— The Kobeissi Letter (@KobeissiLetter) April 29, 2026

Previously, the WSJ reported that the POTUS has already instructed his aides to prepare for an “extended blockade” of the Strait. Meanwhile, Iranian state media warned of “unprecedented military action” if US seizures of Iranian-linked vessels continue.

Separately, Walter Bloomberg noted that Israel’s Prime Minister, Benjamin Netanyahu, is planning a potential trip to Washington to discuss the war front.

Unlike oil, BTC’s price dipped immediately after the reports about the potential blockade extension, dropping from nearly $78,000 to $76,400. Although it has bounced to almost $77,000 as of now, more volatility is expected later today when the US Federal Reserve will conclude its third FOMC meeting of the year.

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