Answer Box: Bitcoin (BTC) traded near $63,914 on Sunday, down just 0.33%, as Iran declared the Strait of Hormuz closed and fired on a commercial vessel, triggering a third round of U.S. strikes on Iranian targets. The muted reaction marks a departure from earlier in the conflict, when Bitcoin slid about 2% toward $61,000 after June's escalation. Major tokens including Ethereum (ETH), XRP, and Solana (SOL) also saw limited moves, with ETH up 2.18% over the past week.
Iranian Closure and U.S. Response
Iran shut the Strait of Hormuz again after firing on a commercial vessel, defying a U.S. demand to guarantee passage through the critical waterway. In response, U.S. Central Command (CENTCOM) launched a third round of strikes, hitting roughly 140 targets across three nights. CENTCOM said it struck more than 300 targets in total to degrade Iran's ability to attack civilian mariners and commercial vessels. The targets included missile and drone sites, naval assets, and coastal surveillance posts. The conflict widened across the Gulf, with Iran claiming attacks on Bahrain, Kuwait, Jordan, Qatar, the UAE, and Oman.
Crypto Markets Show Resilience
Despite the escalation, crypto markets remained calm. Bitcoin posted a minimal 0.33% daily loss, holding near $64,000. Ethereum traded around $1,801, up 2.18% over the past seven days. XRP and Solana each fell less than 2% on the day. The muted move breaks from earlier in the war, when Bitcoin dropped about 2% and slid toward $61,000 after June's escalation. Analysts suggest that traders may be pricing in the geopolitical risk or that the market has already adjusted to ongoing tensions.
Oil Markets Brace for Impact
Oil markets, closed for the weekend, could open higher on Monday. Brent crude held near $76 a barrel on Friday. Another prolonged closure of the Strait of Hormuz could rattle energy markets and lift prices as traders price in tighter supply. The strait is a vital chokepoint for global oil shipments, and any disruption typically sends crude prices higher. The situation remains fluid, with potential knock-on effects for inflation and broader financial markets.