Iran threatens to block the Strait of Hormuz – oil prices explode!

Iran threatens to block the Strait of Hormuz – oil prices explode!

Amid growing tensions between Israel and Iran, the situation in the Middle East could worsen dramatically, with not only geopolitical but also economic implications. The conflict is already weighing on the crypto markets, like Wall Street Online reported. Israel has attacked Iranian nuclear and military facilities, while Iran is threatening the possible closure of the strategic Strait of Hormuz. This waterway is crucial to global oil transport, with about 20 million barrels moving through it every day, accounting for about a third of global maritime transit.

Iran's threat to close the road is fueled by Brigadier General Ismail Kosari, who announced that this option was "currently being examined." Iran could use a variety of methods, from sea mines to anti-ship missiles. Given the tense situation, countries such as China have condemned Israel's actions, while Pakistan and Russia have supported Iran. Iran is also threatening to expand military conflicts at US bases in the region. The latest conflict has already claimed several hundred lives and is causing widespread destruction.

Oil prices under pressure

A possible blockage of shipping in the Strait of Hormuz could have a catastrophic impact on global commodity prices. Loud t online In the event of a blockage, the price of oil could rise to as much as $100 per barrel. After the Israeli attacks, oil prices rose by up to 13 percent to $78.50. A persistently high oil price could have global economic consequences, particularly in countries such as the USA and Germany. Russia could also benefit from rising prices, which could put additional strain on financing its war against Ukraine.

However, experts estimate that a complete closure of the road is unrealistic. Most believe that a destabilization of global oil prices is more likely. Iran has never actually implemented its threats in the past; Nevertheless, due to the current escalation, extreme scenarios cannot be ruled out.

Crypto markets are reacting

Such a situation also has a direct impact on the crypto market. Bitcoin and other cryptocurrencies are often viewed as a hedge against inflation, especially during times of heightened economic uncertainty. Although interest rate cuts may be delayed, military conflicts typically only have a short-term impact on the crypto market. The BTC Bull Token, a new memecoin, is presented as an interesting investment option as 15 percent of the total supply is used for Bitcoin investments. The token also offers an attractive annual return of 57 percent for long-term holders. The BTC Bull Token presale ends in less than 16 days, with the selling price increasing every 48 hours.

The current situation once again illustrates how closely geopolitical events are intertwined with global markets. Developments in the Strait of Hormuz are being closely monitored as the global economy prepares for possible turmoil.