Early Monday, a false report claiming that Iranian missiles struck a U.S. warship in the Strait of Hormuz triggered extreme volatility in global oil prices, and the geopolitical shockwaves quickly reached cryptocurrency markets as investors assessed potential risks.
Oil Spikes: WTI Breaks $107, Brent Near $114
According to Bitcoin.com News, West Texas Intermediate (WTI) crude futures for June delivery shot up to $107.28 per barrel in early trading before cooling to just above $105. Brent crude futures for July delivery climbed close to $114 per barrel and later dropped near the $110 mark. The surge was fueled by social media reports that two missiles from Iran’s Islamic Revolutionary Guards Corps (IRGC) had struck a U.S. Navy vessel participating in "Project Freedom."
U.S. Central Command Quickly Denies
The U.S. Central Command (CENTCOM) swiftly denied the reports, stating on social media: “No U.S. Navy ships have been struck. U.S. forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports.” The operation was announced earlier by former President Donald Trump on Truth Social as a humanitarian mission to free commercial vessels stuck in the Strait of Hormuz, with many ships reportedly low on food and supplies.
Iran’s Stern Warning: Any Armed Force Will Be Attacked
Iranian military chief Ali Abdollahi Aliabadi warned that “any foreign armed force — especially the aggressive US military — will be attacked if they intend to approach and enter the Strait of Hormuz,” stressing that safe passage must be coordinated with Iran’s armed forces. The comments heightened fears of disruption to the chokepoint, which handles about 20% of global crude shipments.
Cryptocurrency Market Recap: Ceasefire Lifted Bitcoin to $71K
Notably, earlier this month (April 7) a two-week ceasefire brokered by Pakistan sent Bitcoin rallying to $71,000. The emergence of this false attack report underscores the fragility of the truce. Cryptocurrency markets, as part of the global risk asset complex, now face renewed downward pressure amid energy price turmoil and geopolitical uncertainty. Some traders argue capital may flee risk assets for havens, while others view Bitcoin’s "digital gold" narrative as a potential draw for flight-to-safety flows.
Market Outlook: Focus on Real Developments and Policy Shifts
Oil prices have retreated from intraday highs, but the geopolitical game in the Strait of Hormuz continues. Investors should closely watch the actual progress of the U.S. Navy’s Project Freedom, Iran’s response, and potential third-party mediation. Cryptocurrency markets may remain choppy as risk sentiment fluctuates, with tokens linked to energy concepts and overall market liquidity likely to be tested. True or false, the market’s sensitivity to geopolitical shocks has been laid bare.