Iranian Parliament Approves Strait of Hormuz Closure Plans – Coincu

Iranian parliament approved the Strait of Hormuz closure on June 22, 2025. Final decision pending from Iran’s top security body.

The Strait of Hormuz closure approval by Iran’s parliament could significantly affect global trade, causing sharp declines in cryptocurrency markets with Bitcoin and Ethereum experiencing losses.

Hormuz Closure Fuels Crypto Market Sell-Off

Iranian parliament approved a proposal to close the vital Strait of Hormuz, a significant passage for global oil shipments. The measure awaits a final decision from the Supreme National Security Council. Market fears have escalated, causing widespread asset sell-offs and raising global trade concerns.

Crypto markets reacted strongly, with Bitcoin declining to approximately $98,000 and Ethereum dropping 4% below $2,200. The proposal coincides with heightened geopolitical tensions following reports of US actions against Iranian sites, heightening investor anxiety. Consequently, nearly $950 million in crypto liquidations occurred.

Despite the widespread impact, no official statements from Iranian or global market leaders have confirmed an immediate enactment of this decision. Financial analysts view the approval as a potential geopolitical maneuver, rather than an impending logistical reality, pending the security council’s decision.

Strait of Hormuz: Historical Tensions and Market Volatility

Did you know? The Strait of Hormuz has historically been a pivotal route, with past threats of its closure causing oil and crypto markets to react sharply. Similar geopolitical tensions in 2019 and 2022 led to swift market downturns.

According to CoinMarketCap, Bitcoin currently trades at $101,405.49, with a market cap of approximately $2.02 trillion. Over the past 24 hours, Bitcoin’s price has fallen by 1.32%, continuing a declining trend seen over the past 30 days, marked by a 7.18% loss.

Financial analysts indicate that any long-term closure of the Strait could exacerbate market volatility. The proposed closure’s impact remains speculative without a decisive move from Iran’s top security body. Meanwhile, the crypto community remains on high alert, watching for potential financial, regulatory, and technological implications of this geopolitical development. An analyst sentiment reflected in discussions among market commentators stated that the Iranian parliament’s move appears to be “rhetorical” so far, with actual closure contingent on approval from Iran’s Supreme National Security Council, highlighting the uncertainty in market reactions.