According to Reuters, the Iranian Parliament has officially passed a bill allowing the closure of the Hormuz Strait - a strategic maritime route transporting about 25-30% of the total global oil and gas production. With a width of only about 35 km at its narrowest point, the Hormuz Strait is an energy lifeline connecting the Gulf region with the international market, especially large energy-importing countries such as China, India, Japan, South Korea, and the entire European region.
If implemented, the move to close the Hormuz Strait would cause serious disruption to the global oil and gas supply chain, pushing energy prices to soar and triggering a widespread wave of inflation on a global scale. Observers believe this is Iran's "strategic card" in the increasingly tense geopolitical situation in the Middle East.
However, this decision is not yet officially in effect. To be implemented, it requires final approval from Iran's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei. Nevertheless, the global financial and cryptocurrency markets have immediately reacted negatively to this information.
Bitcoin price dropped sharply, falling below the 101,000 USD mark. Ethereum also plummeted to below 2,200 USD. The altcoin market is drowning in red, with over 150 million USD being liquidated in just one hour. A panicked sentiment engulfs investors as they fear a potential widespread energy crisis that could lead to extensive economic and financial consequences.
