Tensions in the Middle East intensified over the weekend after Iranian lawmakers expressed support for closing the Strait of Hormuz, a strategically vital oil shipping route, in response to recent U.S. airstrikes on Iran’s nuclear facilities. While the decision is yet to be finalized by the Supreme National Security Council, markets are already reacting — and so is crypto.
Strait of Hormuz: Global Oil Trade’s Lifeline at Risk
The Strait of Hormuz, through which roughly 20% of the world’s oil supply flows, is now under threat of closure. Reports indicate that Iranian MPs unanimously backed the motion in a consultation session. However, the ultimate decision lies with Iran’s highest security authority.
“The MPs have unanimously reached this conclusion… The decision lies with the Supreme National Security Council,” stated Tehran-based journalist Saeed Azimi.
Should the strait close, oil prices are expected to spike dramatically, triggering stagflation concerns in import-heavy economies like the United States and several EU nations. Brent and WTI crude prices are projected to gap up significantly at Monday’s open.
Digital Oil Memecoin (OIL) Rallies Over 400%
In a surprising twist, a little-known memecoin called “Digital Oil” (OIL) exploded in value, gaining over 400% in a matter of hours. The token, trading on the Solana-based decentralized exchange Raydium, saw a surge in interest amid speculation and geopolitical tension.
“Fading the most geopolitically advantaged memecoin AND the ONLY coin endorsed by Peter Schiff himself? COULDN’T BE ME… $OIL,” read a post from an X account linked to the project.
Originally launched in early 2025, OIL memecoin gained notoriety when Bitcoin critic Peter Schiff unexpectedly supported the idea of a crypto asset pegged to oil’s market dynamics. Schiff’s endorsement gave the token initial credibility within niche circles, but recent real-world events have dramatically altered its trajectory.
Market Outlook: Volatility Ahead
With the potential closure of the Strait, energy markets, equity indices, and digital assets are all bracing for volatility. While institutional investors monitor Brent and WTI, retail traders have seemingly pivoted to speculative plays like $OIL, betting on continued turmoil.
Whether the digital oil narrative becomes a trend or just another memecoin moment, one thing is clear — geopolitical headlines are increasingly shaping crypto market behavior, often in unpredictable ways.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.