The US military has executed a significant strike on Kharg Island, a crucial location in Iran that accounts for approximately 2% of the world’s oil supply.

Although the President stated that he deliberately avoided targeting any oil infrastructure on the island, he hinted at the possibility of a change in strategy if Iran were to hinder the safe passage of ships through the Strait of Hormuz.

Recent Attack and Bitcoin Movement

Trump characterized this military operation as one of the “most powerful bombing raids in Middle Eastern history.” Despite the island’s limited size, it is estimated to manage around 90% of Iran’s crude oil exports along with its share of global supply.

According to analysts at the Kobeissi Letter, this represents a “major escalation for oil markets.” However, the attack took place shortly after most financial markets had closed, dramatically limiting the potential immediate market impact. On the previous trading day, USOIL closed close to $100, lower than almost $120 reached at the beginning of the week.

The repercussions on Bitcoin have been minimal thus far. Following a rejection at the $74,000 level, Bitcoin has maintained stability between $70,000 and $71,000 subsequent to the military actions. Historical patterns suggest that Bitcoin could be affected when markets reopen on late Sunday or Monday, implying potential volatility ahead.

Bitcoin Chart
BTCUSD Mar 14. Source: TradingView

Changing Sentiments

The analytics firm Santiment observed a surge in positive sentiment regarding the resolution of the Middle Eastern conflict earlier this week, following Trump’s claims of a decisive victory. However, continued military action has dissipated this optimism recently.

The analysts noted that discussion around terms such as ‘war,’ ‘conflict,’ and ’tensions’ is on the rise, reflecting the differences in objectives held by the US and Israel regarding future developments.