LIVE: Bitcoin reclaims $65,000 as Iran escalates tension by killing two U.S. troops in Jordan

Iran has meanwhile suspended its commitments under the memorandum of understanding agreed with Washington last month, according to a foreign ministry official. The statements were not conclusive on a complete withdrawal, and there is uncertainty regarding the stand that higher-level Iranian officials might adopt.

The initial agreement was intended to help secure a truce and facilitate negotiations on a larger scale. In accordance with the terms of the agreement, the USA withdrew from its blockade, and Iran allowed free passage through the Strait of Hormuz.

As Cryptopolitan previously reported, both sides have since reversed those steps and accused each other of violating the agreement first. Fighting has continued, and Iran attacked three ships in the Strait of Hormuz on July 7 during a funeral.

The U.S. responded by striking additional targets and cancelling a waiver that had allowed Iran to sell oil internationally for U.S. dollars for the first time in years. That exemption had been included in the interim deal.

The United States says two service members were killed and several others were wounded while U.S. Central Command and partner forces defended an air base in Jordan from Iranian ballistic missiles and drones. U.S. warplanes have used the base to carry out operations against Iran.

One service member remains missing. Four others who were taken to hospitals in Jordan have since been discharged. These are the first American deaths caused by direct Iranian fire since the opening days of the war.

The Trump administration said:

“On July 17, two US service members in Jordan were killed in action as US Central Command (CENTCOM) and partner forces defended against Iranian ballistic missile and drone attacks. Additionally, one service member is currently missing. Out of respect for the families, CENTCOM will withhold additional information, including the identities of the fallen warriors, until 24 hours after the next of kin have been notified.”

Bitcoin had reclaimed $65,000 on Coinbase U.S. shortly before the announcement. It was trading at $65,020 on the exchange at press time, while prices across the rest of the global market remained closer to $64,500.

Options traders are still betting that Bitcoin can reach $72,000 before the end of July, around the same time as the Federal Reserve’s upcoming policy meeting.

The positions were placed through Bitcoin call options listed on Deribit, which gain value when the spot price rises beyond a chosen level before expiration.

Traders bought 20,000 July 31 calls with a $70,000 strike and sold another 20,000 calls at $72,000 with the same expiry. The combined 40,000 contracts represent $2.5 billion in notional value, with each contract tied to one Bitcoin.