Crypto community fears Iran choking oil supply and crashing markets, but that may be overblown

Following airstrikes by Israel and the U.S. on Iran, fears escalated on platforms like X that Tehran might shut down the Strait of Hormuz, potentially causing oil prices to spike to $120–$150, triggering inflation, and destabilizing financial markets, including Bitcoin. Bitcoin briefly dropped from $65,600 to $63,000 over the weekend jitters. However, some observers argue that an outright closure is impractical and not in Iran's interest, as it exports most of its oil to China. Furthermore, geographically, most shipping lanes through the strait, which handles about 20 million barrels of oil daily, are predominantly in Omani waters, making a complete blockade by Iran difficult. Economists suggest that even if a disruption occurred, OPEC members and the U.S. (the world's largest producer) could offset supply shortages, making any price spike temporary. Nevertheless, the ongoing crisis could still drive risk aversion, potentially pushing Bitcoin below the $60,000 support level.

(Source：CoinDesk)