The situation between the US and Iran has blown up again. Iran warned that “not a drop of oil will be able to leave the Strait of Hormuz,” and the U.S. Treasury Secretary Bessent went straight to turning sanctions on Iran into an “economic version of the Normandy landings.”

The Strait of Hormuz ships about one-fifth of the world’s oil every day. If it were really to be blocked, oil prices would very likely surge higher. As “digital gold,” the bigger the geopolitical risk, the more opportunity there is.

In the Asian session, everyone has been watching safe-haven assets. They’ve been rallying for days in a row, and people are also hopping on the momentum. But with geopolitical tensions at this level, the market will shake at the slightest hint of trouble.

Today, Bessent is set to announce the specific details of the sanctions. The content will probably be quite intense. Any country that supports Iran could face “secondary sanctions”—and that move is indeed ruthless.

In the short term, funds will flow into safe-haven assets, but over the long run, nobody can say for sure how things will turn out. Just keep an eye on these big bets. Small-cap tokens are more likely to blow up at times like this.

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