Iran's government operates a $7.8 billion cryptocurrency shadow economy to facilitate international trade amid sanctions. This crypto infrastructure also serves as a crucial financial lifeline for ordinary Iranians during protests and economic crises.
The crypto community is expressing concerns about potential Iranian disruption of oil supply through the Strait of Hormuz, which could negatively impact cryptocurrency markets. However, experts suggest these fears may be exaggerated, arguing that a complete closure of the strait would be unlikely or impractical for Iran to implement.
Bitcoin, Ethereum, and other cryptocurrencies experienced price drops following military strikes by the US and Israel against Iran. The geopolitical tensions triggered a sell-off in the crypto markets as investors moved away from risk assets.
Oil-linked futures on Hyperliquid's HIP-3 protocol surged 5% following U.S. and Israeli military strikes on Iran. The price movement reflects renewed market concerns about potential oil supply disruptions from Middle East geopolitical tensions.