US‑Iran war tensions take a sharp turn as President Donald Trump issued a stark 48-hour ultimatum, demanding that Tehran reopen the Strait of Hormuz. Many countries have also condemned what they describe as the “de facto closure” of the Strait of Hormuz by Iranian forces.
As the US-Iran conflicts become even worse, the crypto market and oil prices are facing severe pressure. While oil prices continue to surge, top cryptocurrencies are posting notable losses.
US-Iran War Escalates Today
In the latest development within the US-Iran war, Donald Trump has warned Iran to reopen the Strait of Hormuz within 48 hours. He added that failure to comply would lead to the destruction of Iranian power plants, starting with the largest. His Truth Social post read,
This heightened tension comes just a day after speculations of a possible resolution in the war. Yesterday, Trump stated that he might be winding down military operations in Iran. Trump also hinted that the US is preparing for peace talks. However, the situation changed today with the president’s fresh warning.
Other countries, including the UK, France, Germany, Italy, South Korea, Australia, the UAE, and Bahrain, have voiced strong support for the US in pressing Iran over the Strait of Hormuz. They have condemned Iran’s effective closure of this vital shipping route. The countries also stressed the importance of keeping it open for international trade and energy flows.
Iran Retaliates with Threats to US Infrastructure
While Trump threatened Iran about escalating attacks, the latter responded with a severe warning. Tehran warned that any US attack would trigger a heavy retaliation targeting energy, technology, and desalination infrastructure in the region. Iran’s military operational command Khatam Al-Anbiya stated,
This warning comes on the heels of Iran’s missile strike on Israel’s Haifa oil refinery. While this is the country’s largest oil refinery, the move marked a significant escalation of hostilities between the two nations.
How Crypto and Oil Prices React?
Amid escalating US-Iran tensions, oil prices continue to surge. As of press time, it is valued at $98, up nearly 3%. This comes after a significant decline in the oil price despite growing geopolitical issues recently. However, as the Middle East tensions are expected to escalate even more, the oil prices are poised to rise further in the coming days.
While Trump believes the release of the US Strategic Petroleum Reserve could stabilize the value of oil, Patrick De Haan, petroleum analyst at GasBuddy, states it could have little impact on the price. He stated, “The release won’t have much impact at all. It’s kind of like trying to replace a water main with a straw.”
In response to rising oil prices and heightening US-Iran tensions, the crypto market is also experiencing significant pressure. Despite recent signs of recovery, the market has once again dipped, with major assets facing notable losses.
Source: https://coingape.com/us-iran-tensions-spike-as-trump-sets-48-hour-deadline-on-strait-of-hormuz-blockade/
