You’re probably aware that tensions in the Middle East are escalating following the U.S. attack on Iran — so let’s break down the situation.
First, it’s important to note that Iran is expected to retaliate. The country had already warned it would close the Strait of Hormuz, and according to some sources, it has done so.
Now, if Iran fully blocks this strait, what are the economic and crypto consequences?
Let’s remember: 20% of the world’s oil passes through the Strait of Hormuz. If it’s closed, oil from Saudi Arabia and other Gulf countries won’t get through — leading to a global fuel shortage.
A shortage of oil and gas would severely impact production in many countries that rely heavily on energy imports. And in truth, every nation needs oil to sustain its economy.
To make things worse, Yemen, which supports Iran, could also decide to block the Bab el-Mandeb strait, a critical passage connecting the Indian Ocean to the Suez Canal. This would add more pressure on global trade and supply chains.
If global economies weaken, investors may rush into safe-haven assets like gold — potentially triggering a crisis on the scale of 2019 or worse. If other superpowers get involved, we might face a serious escalation.
⚠️ Please be cautious with your investments.
This is not financial advice (NFA) — just a personal analysis of the current situation.
