Oil prices jumped on Tuesday after Iran reportedly fired at least two missiles at commercial ships crossing the Strait of Hormuz, reviving fears over the world's key oil chokepoint and the fragile truce between Washington and Tehran, according to BeInCrypto. The attack sent crude oil up by 0.9% to $69 per barrel, erasing some of the recent losses that had brought prices closer to pre-war levels.
The Strait of Hormuz, through which about 20% of global oil passes, is a notorious flashpoint. The incident comes just days after crude had erased its entire war premium and sank closer to pre-war levels, signaling that the underlying supply risk remains acute. The rebound underscores how quickly the region's instability can reroute energy markets.
Regulatory fallout remains uncertain, but the attack threatens to unravel the delicate US-Iran peace deal that markets had been pricing in. Any escalation could trigger sanctions or military responses, further tightening global oil supplies. The Biden administration has yet to issue a formal statement, but the Pentagon is reportedly monitoring the situation.
Bitcoin (BTC) is up by 0.9% today, trading at $63,300, according to CoinGape. The cryptocurrency's muted reaction—up only marginally amid a geopolitical shock—suggests it is not yet functioning as a reliable safe-haven asset. Bitcoin's gains remain modest compared to the sharp move in oil, highlighting its continued correlation with risk assets.
Market participants are watching for further developments. A sustained closure of the Strait could send oil prices spiking, while Bitcoin may benefit from fears of fiat currency debasement if the crisis escalates. Both assets remain sensitive to the next move from Tehran and Washington.