The United States this morning used B-2 "Ghost" strategic bombers to conduct air strikes on Iran's nuclear facilities in Fordow, Natanz, and Isfahan. In the evening, the Iranian parliament overwhelmingly passed a motion to close the Hormuz Strait, which, while still pending final approval from the Supreme National Security Council, immediately sent shockwaves through global markets.
At the time of writing, Bitcoin was trading at its lowest at $99,066, falling below the $100,000 mark. This is the lowest level since May 8th.
Ethereum fell even more, breaking below $2,200, with the lowest point reaching $2,155.
The Hormuz Strait handles about a quarter of global oil transportation. If interrupted, the energy supply chain would quickly become tight. Iran is understood to have shore-based missiles, drones, mines, and small speedboats that can disrupt merchant ships. However, the US aircraft carriers "Ford" and "Nimitz" have also been deployed nearby and can conduct escort and mine-sweeping operations.
Heightened Hedging Narrative: Bitcoin's Dual Challenge
JPMorgan estimates that if the strait is blocked for an extended period, oil prices could surge to $120-130 per barrel and potentially trigger global stagflation. However, historical experience shows that when inflation expectations rise, Bitcoin is often viewed as a store of value due to its scarcity. Whether Bitcoin can demonstrate its nature as a hedging asset this time is what global investors are watching.
