Crypto markets stay muted despite looming U.S.-Iran agreement

The proposed memorandum aims to extend a ceasefire between Washington and Tehran while reopening critical shipping routes, specifically through the Strait of Hormuz. Vice President JD Vance is slated to attend the formal signing ceremony in France, signaling high-level administrative backing. Despite the diplomatic progress, digital asset investors are shying away from risk, choosing instead to focus on the Federal Reserve’s recent policy decisions.

On June 17, the Federal Open Market Committee voted unanimously to keep interest rates steady at 3.50%–3.75%, extending a policy pause that has defined the 2026 fiscal year. With borrowing costs remaining elevated and inflation concerns lingering, market participants are scrutinizing Federal Reserve Chair Kevin Warsh for clues regarding potential tightening later this year. While geopolitical stability typically acts as a catalyst for risk-on assets, the current climate of economic uncertainty appears to be overriding the potential benefits of the Iran agreement. Investors remain locked in a defensive posture, waiting for concrete implementation of the deal before committing fresh capital to the market.