XRP News Today: Bitcoin Drops 6.3% as Iran Threatens Strait of Hormuz Closure

Bitcoin's value plummeted below $99,000 on Sunday following Iran's announcement to close the Strait of Hormuz, a critical global oil transport route. This decision came in response to U.S. airstrikes on Iranian nuclear facilities, further escalating an already tense geopolitical situation.

The immediate impact was significant. Ethereum experienced a 10% drop, trading at $2,180, while XRP slid by 8%, landing at $1.93. The total market reacted with sharp volume spikes, liquidations, and uncertainty that is unlikely to dissipate soon.

The Strait of Hormuz, located between Iran and Oman, handles a quarter of global oil exports. Iran's parliament, reacting to the U.S. military action, backed a proposal to block the channel. Although the parliament does not control the Strait, the threat was sufficient to shake global markets. ClearView Energy Partners warned that oil prices could open “meaningfully above” the Friday close unless the U.S. and its allies make diplomatic moves.

If Iran follows through with its threat, it would be the first time the conflict directly affects global oil flows. The crypto market was severely impacted. In the last 24 hours, Bitcoin saw significant trading activity as traders moved quickly. The coin is now down 6.3% this week, with its market cap at $1.96 trillion.

Ethereum, which was already struggling, is now down 14.3% over 7 days. XRP, hit by both the geopolitical shock and its usual regulatory baggage, is down 10.7% on the week with a $114 billion market cap. Solana, sitting at $128.65, fell 6.4%, dragging its weekly losses to nearly 15%. BNB didn’t escape either, shedding 3.9%, down to $608. Only Tether held firm to its dollar peg at $1.00.

Despite the panic, the authority to block Hormuz isn’t up to Iran’s parliament. Security decisions go through the Revolutionary Guard, which hasn’t yet acted. Still, the threat alone has put pressure on Washington and raised the risk of a military showdown. The U.S. has deployed major forces to the Gulf region, and any move from Iran could lead to an armed response. For crypto investors, that’s not a good sign. As long as oil routes are in danger, markets won’t stabilize. Crypto isn’t disconnected anymore. It’s tied directly to global energy routes.

Eurasia analyst Gregory Brew said that closing the Strait “would be an effective declaration of war against the Gulf states and the US.” He also noted that Iran, already weakened economically, is “unlikely to seek escalation of that kind at this time.”

U.S. Vice President JD Vance also weighed in during an interview. “Their entire economy runs through the Strait of Hormuz. If they want to destroy their own economy and cause disruptions in the world, I think that would be their decision,” he said.

Meanwhile, Ethereum’s fall is the worst it’s seen this quarter, and Bitcoin’s slip below $100K wipes out weeks of gains. XRP, already on shaky ground due to legal fights, is now down 6% in a day, with a full 10.7% loss over 7 days. Market caps are crumbling, and the fear is showing in trade volume spikes.

Right now, the only certainty is that nothing is certain. Crypto, oil, and geopolitics are locked in the same room, and Iran just turned off the lights.