Negotiations between the US and Iran in Switzerland have pushed into a second day, with the Strait of Hormuz closed, Trump issuing existential threats, and Bitcoin sitting at the center of an increasingly bizarre sanctions standoff.

The talks, which began on June 21, are aimed at brokering a ceasefire. Iran has shuttered the most important chokepoint in global energy, a waterway responsible for roughly 20% of the world’s oil and LNG shipments. Tehran has been demanding Bitcoin payments for ships transiting the strait.

The Hormuz gambit and crypto sanctions

Trump warned Iran that they “won’t have a country” if they maintain control over the strait’s closure.

Iran reportedly began demanding cryptocurrency payments, primarily Bitcoin, for Hormuz transit tolls as early as April 2026. The US Treasury has frozen approximately $344 million in digital assets linked to Iranian crypto wallets.

Bitcoin holds steady at $64K while the world burns

Against this backdrop, Bitcoin has been remarkably stable, holding near $64,000.

What this means for crypto investors

When the US Treasury freezes $344 million in crypto assets tied to a sovereign nation, it sends a signal to every exchange, every OTC desk, and every compliance team that the government is watching cross-border crypto flows. Nation-states are increasingly treating Bitcoin and other crypto assets as tools of economic warfare. Iran uses them to dodge sanctions. The US uses freezing mechanisms to counter that.

The wildcard is the Treasury’s next move. If the $344 million freeze is the opening salvo in a broader crackdown on crypto-facilitated sanctions evasion, any expansion of OFAC’s crypto enforcement could create compliance headaches across DeFi protocols and centralized exchanges alike.