Bitcoin and Ethereum drop as Iran raises Hormuz war risk

Two Chinese container ships linked to Cosco briefly moved toward the Strait of Hormuz on Friday before turning back near Iranian waters, adding to market concern over shipping access in the Gulf. 

Meanwhile, the moves came as Iran’s Revolutionary Guard repeated that traffic tied to countries aligned with the United States and Israel would not be allowed through the waterway, according to a Bloomberg report.

The CSCL Indian Ocean and CSCL Arctic Ocean headed northeast from waters near Dubai before making U-turns close to Larak and Qeshm islands, near the narrow entrance to the Strait of Hormuz. The vessels are linked to China’s state-owned Cosco Shipping.

Iran turned back two Chinese ships on Friday, while the IRGC said it had forced three container ships of different nationalities to withdraw. The guard also said the strait was “closed” for shipping to and from ports tied to Iran’s “Zionist-American enemies.”

The Associated Press reported that Iran has been operating what analysts described as a de facto control system for vessels moving through Hormuz. Under that system, some ships have been required to pass through Iranian-controlled routes or seek approval before transit.

Reuters also reported that the UAE is now willing to support an international force to help reopen the strait. That report followed a wider drop in shipping traffic and growing concern over energy flows through one of the world’s most important oil chokepoints.

Crypto market falls as traders react to war risk

Bitcoin and Ethereum both traded lower on Friday as investors responded to renewed Middle East risk. Bitcoin last traded at $66,619, down about 4.0% on the day, while Ethereum traded at $1,990, also down about 3.9%.

Some social media posts claimed Iran had destroyed another tanker in Hormuz, but Reuters results reviewed here did not confirm that specific claim.