Iran’s politicians leaned in favor of blocking the strategically important Strait of Hormuz on Sunday in response to the US military strikes on the Iranian nuclear facilities, according to Saeed Azimi, Tehran correspondent for France 24.
“The MPs have unanimously reached this conclusion merely in a consultation capacity. The decision lies with the Supreme National Security Council,” Azimi said on X, responding to several media reports, including Al Arabia, that the Parliament has approved the closure.
The Strait, a key global oil shipping route, accounts for one-fifth of the world’s oil trade. Thus, the closure of the route is likely to send oil prices skyward, possibly into three figures, bolstering stagflation fears in oil-importing trade deficit nations like the U.S.
Analysts expect Brent and WTI crude prices to open significantly higher on Monday, pricing a potential supply squeeze.
In the meantime, an obscure token called the digital oil memecoin (OIL) has skyrocketed over 400% against USD, according to data source DEXTools.io. The token is listed on the Solana-based decentralized exchange Raydium.
“Fading the most geopolitically advantaged memecoin AND the ONLY coin endorsed by Peter Schiff himself? COULDN’T BE ME…. $OIL,” an X handle supposedly associated with the memecoin, said on the social media platform.
The token came into existence early this year after vocal cryptocurrency and bitcoin critic Peter Schiff published a post on X supporting the idea of creating a digital oil.