Iran's parliament has leaned towards blocking the Strait of Hormuz, a crucial maritime route that handles about 20% of global oil trade, in response to recent U.S. military strikes on Iranian nuclear facilities. Although the final decision rests with the Supreme National Security Council, the parliamentary consultation highlighted rising geopolitical tensions. Blocking the strait could significantly tighten oil supplies, potentially sending Brent and WTI crude prices above $120 per barrel, which would aggravate stagflation concerns globally.
Meanwhile, the obscure digital oil memecoin OIL has surged over 400% against the USD. The token, traded on Solana-based Raydium DEX, gained momentum after Peter Schiff, a noted cryptocurrency skeptic, publicly endorsed the creation of a digital asset linked to oil. The sudden price spike coincides with the heightened geopolitical risks surrounding the Strait of Hormuz.
Market prediction platforms like Polymarket reflect increased probabilities that Iran might close the strait, jumping to 52% for a closure before the end of 2025. Despite this risk, the broader cryptocurrency market, including Bitcoin, remains stable, with BTC trading above $100,000.