Bitcoin Plunges to $99K After Iran Blocks Oil Access via Strait of Hormuz
Global financial markets were rattled early Monday after Iran moved to block access to the Strait of Hormuz — a critical maritime chokepoint through which nearly 20% of the world’s crude oil flows. The announcement caused sharp volatility across asset classes, with Bitcoin (BTC) falling by 3.5% in the past 24 hours to US$99,000.
Crypto markets reacted quickly to the geopolitical escalation. While Bitcoin’s loss was notable, altcoins took a heavier beating. Ethereum (ETH) dropped 10% to US$2,161, while Solana (SOL) slid 9.48% to US$127.17. Meme coins like Dogecoin (DOGE) and Cardano (ADA) both declined over 9%, trading at US$0.1460 and US$0.5234 respectively. XRP, meanwhile, dropped to US$1.935.
The price action reflects mounting investor uncertainty as the Middle East edges closer to further conflict. Iran's decision to shut the Strait came after it announced that diplomacy was no longer a priority, signalling it would instead seek support from Russian President Vladimir Putin in upcoming talks in Moscow.
Market analysts say Iran’s manoeuvre could severely disrupt global oil supply chains. The Strait of Hormuz is not only vital for the transport of oil but also crucial for the economic health of nations relying on maritime trade.
Speaking to NBC's Meet the Press, US Vice President JD Vance warned that Iran's move could severely backfire.
"I think it would be an act of economic suicide for Iran. Their entire economy depends on the Strait of Hormuz. Blocking it harms them just as much — if not more — than anyone else,” Vance said.
The surge in oil prices has already caused the S&P 500 to dip more than 1%, while US Treasury yields edged lower. Investors now face the dual pressure of rising inflation fears and unpredictable crypto market swings.
Despite the current pullback, some analysts suggest Bitcoin’s long-term fundamentals remain intact, especially amid weakening confidence in fiat systems and increasing institutional crypto adoption. However, the coming days could see continued volatility as markets adjust to the latest developments.
The crypto community will be closely watching how this geopolitical standoff plays out, and whether any diplomatic channels reopen to ease tensions.
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