Iran has a blunt new warning for the world. If it cannot sell its oil, it says no one else in the region will either. The threat lifted crude prices on Wednesday and pulled Bitcoin (BTC) back below $66,000.
The reason it matters comes down to one narrow waterway. Most Gulf oil ships out through the Strait of Hormuz. Traders now fear Iran could choke off that route.
Bitcoin, Oil, and Brent Spot Prices. Source: TradingView Iran's Oil Threat Revives Hormuz Fears
Two Iranian officials spoke on the same day. Foreign Minister Seyed Abbas Araghchi promised revenge for any attack.
"Our defense doctrine is clear: eye for an eye. Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response. Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets," Seyed Abbas Araghchi, Iran's Foreign Minister articulated.
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Parliament Speaker Mohammad Bagher Ghalibaf was blunter about oil.
"In a region where we do not sell oil, no one will sell oil. If our security is not ensured, no infrastructure will be safe ... the situation of the strait will not return to pre-war conditions," the Iran Parliament Speaker reiterated.
Why do these words move markets? The Strait of Hormuz is the world's most important oil route. About one in five barrels of the world's oil passes through it, according to the EIA, the U.S. energy agency.
Iran leans on that route too. It ships around 1.5 million barrels of oil a day, almost all to China. So its threat cuts both ways.
Iran has made this threat before, during sanctions fights in 2011 and 2012. It never actually closed the strait. Even so, the risk alone pushes prices up, as it did when oil topped $90 last week.
Oil Climbs While Bitcoin Slips
Oil rose fast. West Texas Intermediate (WTI) crude gained about 2.25% to near $89. Brent, the global benchmark, traded close to $96, according to TradingView. Both had fallen earlier in the week on fresh ceasefire hopes.
Bitcoin went the other way. The top cryptocurrency traded just below $66,000. It was down about 0.4% on the day after giving back earlier gains.
Bitcoin, Oil, and Brent Spot Prices. Source: TradingView The link is simple. Costlier oil can push inflation higher. That can keep the Federal Reserve from cutting interest rates, which hurts riskier assets like Bitcoin. The same thing happened when Trump declared a US-Iran truce deal dead in early July.
What happens next depends on Washington and whether the ceasefire holds. So far, Bitcoin has not been the safe haven some hoped. More fighting would test it again.
Read the Original story No One Will Sell Oil If We Can’t: Bitcoin and Crude React Instantly As Iran Draws New Red Line by Lockridge Okoth at beincrypto.com