The US carried out "the most effective bombing attack" on Iran's Hargi Island: when will BTC react?

BTC has remained relatively stable for now, but it will react once the futures and legacy markets open.

The US military launched a massive attack on one of Iran’s key areas, Kharg Island, which is reportedly responsible for 2% of the world’s oil supply.

Although POTUS said he had deliberately chosen not to bomb any oil infrastructure on the island, he threatened to reconsider his decision if Iran “does anything to impede the free and safe passage of ships through the Strait of Hormuz.”

New attack and BTC reaction

Trump called the attack “the most powerful attack in the history of the Middle East.” Although it is a relatively small island, it is estimated to handle about 90% of Iran’s crude oil exports and 2% of the world’s oil supply.

According to Kobeissi Letter analysts, this is a “HIGH development for the oil markets”. However, the attack was carried out hours after (almost) all financial markets were closed, so the damage is still limited. USOIL closed below $100 on Friday, still about $120 below Monday’s peak.

The implications for Bitcoin have also been very small so far. Yesterday, the asset declined to $74,000, but after the attacks it remained relatively stable in the $70,000-$71,000 range. However, similar developments affected BTC the previous weekend, when all other financial markets opened late Sunday or early Monday. Thus, more volatility is expected tomorrow evening.

Changes in emotions

Analyst firm Santiment noted that the crowd’s optimism about a possible end to the military conflict in the Middle East increased sharply earlier this week when Trump again claimed that the US “is winning very decisively”. But subsequent actions, continued military operations and new strikes have dampened this optimism.

Analysts said social preference around words like “war,” “conflict,” “war” or “tension” is resurging, especially since the U.S. and Israel have seemingly different scenarios of how they want the situation to unfold.