Bitcoin Rebounds 3% to 73,400 After U.S.-Iran Talks Fail

Bitcoin rebounded sharply on Monday, climbing more than 3 percent to close at 73,400, erasing a weekend decline triggered by the collapse of U.S.-Iran peace talks in Pakistan and President Donald Trump's subsequent order for a naval blockade of the Strait of Hormuz. The cryptocurrency's recovery mirrored gains in broader risk assets, as markets appeared to shrug off escalating geopolitical tensions in the Middle East.

The negotiations, held in Islamabad over the weekend, marked the first direct face-to-face meeting between U.S. and Iranian officials since the 1979 Islamic Revolution. Lasting 21 hours, the talks broke down without agreement on key issues. Iran refused to halt uranium enrichment or relinquish control of the Strait of Hormuz, while presenting its own demands for full sovereignty over the waterway, war reparations, release of frozen assets, and a regional ceasefire extending to Lebanon. The U.S. sought assurances of free passage through the strait and a commitment from Iran to abandon its nuclear weapons program.

U.S. Vice President J.D. Vance, who led the American delegation, described the outcome as a mix of progress and setback upon departing Pakistan late...