Geopolitical tensions have escalated once again after the Islamic Revolutionary Guard Corps (IRGC) officially announced the closure of the Strait of Hormuz, a vital route that serves as a lifeline for global energy distribution. In its official statement, the IRGC also threatened to take firm action against any vessels attempting to pass through.

Early reports indicate that at least three container ships from various countries were forced to turn back by IRGC naval forces after receiving stern warnings. This unilateral move has immediately raised serious concerns about global energy supply stability, considering that around 20% of the world’s oil distribution passes through this route.

Oil Prices Surge Sharply

The immediate impact was evident in the energy market. U.S. crude oil (WTI) prices surged significantly, breaking past the $97 per barrel level. This spike reflects growing concerns over potential supply disruptions, as well as market pessimism regarding the likelihood of a near-term diplomatic resolution.

Market participants have begun repricing geopolitical risk, particularly in relation to the potential escalation of conflict in the Middle East.

Crypto Market Also Hit

Meanwhile, the crypto market has not been spared from the negative global sentiment. The price of Bitcoin reportedly dropped really low to below $67,000, triggering a wave of large-scale liquidations.

Within just 4 hours, total liquidations in the crypto market reached approximately $258 million, with Bitcoin accounting for around $118 million. Other crypto assets also faced similar pressure amid increasing risk-off sentiment among global investors.

Conclusion

The closure of the Strait of Hormuz by the IRGC has become a major catalyst shaking global markets, from energy to crypto. The surge in oil prices and pressure on crypto assets highlight the market’s growing sensitivity to geopolitical developments.

For now, market participants continue to monitor the evolving situation in the Middle East, which could play a decisive role in shaping the short-term direction of global assets.