Crypto community fears Iran could choke oil supply, but risk may be overstated

As tensions flared between Iran, Israel and the U.S., Israel and the U.S. launched early Saturday airstrikes on Iran and Iran retaliated by firing ballistic missiles at Israel and U.S. bases, raising fears of a broader conflict. With traditional markets closed over the weekend, crypto accounts on X reacted: bitcoin (BTC $64,839.94) fell to $63,000 from about $65,600 before recovering to $65,000, while oil-linked futures on Hyperliquid jumped more than 5%.

The Strait of Hormuz, 21 miles at its narrowest, handled about 20 million barrels a day in 2024, per the U.S. EIA, and posts on crypto X warned that a closure could choke supplies and send oil toward $120–$150, triggering inflation and market sell-offs. One handle, @Crypto_Diet, warned oil could spike to $120–$150, and geopolitical strategist Velina Tchakarova noted roughly 20% of global oil passes through the strait.

Some outlets reported that several oil majors and trading houses had suspended shipments through the passage.

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