The price of Bitcoin falls
On Sunday morning, Bitcoin’s price fell from about $103,000 to around $99,700 after Iran’s Parliament approved a possible closure of the Strait of Hormuz, an important route for global trade and energy.
The parliament made this decision soon after the U.S. carried out military strikes on Iranian nuclear sites, which marked a big increase in the Iran-Israel conflict. President Trump called the military operation “very successful.”
The possibility of closing the Strait of Hormuz is viewed as a response to more U.S. military actions, but the closure has not happened yet. The last choice is up to Iran’s Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei.
The Strait of Hormuz is important for global oil transport. It carries around 20 million barrels of crude oil each day, making up 20% of the world’s daily oil use and almost one-third of oil transported by sea. Countries like India, China, Japan, and South Korea depend a lot on this route, with China getting almost half of its crude oil through the strait.
Additonally, financial experts warn that if the strait closes, oil prices might rise above $100 per barrel. The price might ossibly hit $120 or even $150 if the disruptions continue.
Furthermore, price increases would also impact energy costs. This can lead to higher household fuel bills, industrial costs, and transportation expenses, since oil is essential for producing and delivering about 95% of global goods.
