Bitcoin crashes on Iranian Parliament approval of Hormuz Strait closure

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Bitcoin price decreased when the Iranian parliament agreed to close the Strait of Hermoz, which increased the fears of the shocks of oil supplies and global inflation.
The prolonged closure of the strait can pay the oil above $ 100 per barrel, which affects the gross domestic product, inflation and encryption.

Bitcoin price fell from about 103,000 dollars to about 99,700 dollars on Sunday morning after the Iranian parliament agreed to close the Strait of Hermoz, one of the most important selection points in the world for global trade and power supply.

The parliamentary step, which Reuters mentioned for the first time, came hours after The United States launched coordinated strikes On the Iranian nuclear targets, on the occasion of the first public military intervention of Washington in the conflict of Iran and Israel. President Donald Trump described the operation as “very successful” in a post on the social truth on Saturday evening.

Tehran’s threat is explained to close the Strait of Hormuz as a direct response to the escalation of American military actions, but the closure was not yet valid. The implementation of this measure is now in the hands of the Supreme National Security Council in Iran, and in the end, the supreme leader Ayatollah Ali Khameneini.

Hermoz Strait Almost 20 million barrels of crude oil Daily, 20 % of global daily consumption and a third of the oil -transferred oil trade.

As the only channel of deep water capable of absorbing the largest oil tankers in the world, the strait is necessary for the main economies including China, India, Japan and South Korea, where China has obtained nearly half of its raw imports through this road.

Analysts warn that a possible closure can Pay oil prices above $ 100 For a barrel, with a possible rise to $ 120 or $ 150 if the disturbances persist.

The impact may extend beyond energy costs, affect home fuel bills, industrial inputs and transportation expenses, as oil produces and delivers about 95 % of global commodities.

Economists estimate that the inflationary effect of oil prices can reduce 1-2 % global GDP if the strait remains closed for a long time. Central banks face a difficult decision between raising interest rates to control inflation or policy reduction to support economic growth.