The US military is systematically dismantling Iran's energy supply chain. Strikes have hit Kharg Island, the country's most critical oil export hub, and the Gorgan railway line in northern Iran. Kharg Island handles approximately 90% of Iran's crude oil exports.
The conflict, which officially began in late February 2026, has escalated under the Trump administration. Initial strikes in March and April targeted over 90 military sites on Kharg Island. After Iran breached a ceasefire and attacked commercial vessels in the Strait of Hormuz, US operations expanded in July 2026 with a broader mandate, striking over 80 additional targets including transportation networks.
US officials have indicated that while oil infrastructure hasn't been directly destroyed yet, future strikes remain on the table if Iran continues to threaten shipping through the Strait of Hormuz.
Brent crude has been trading near $110 per barrel. Energy stocks have reacted favorably to the supply-side anxiety. Roughly a fifth of the world's oil passes through the Strait of Hormuz.
During this conflict, Bitcoin has demonstrated both sides of its personality. BTC rebounded above $70,000 during positive diplomatic talks. When escalations resumed or oil prices surged, Bitcoin dipped, tracking risk sentiment.
Reports suggest Iran has been leveraging Bitcoin mining and stablecoins as tools to navigate international sanctions. The country has used its subsidized energy to power mining operations.
Iran's increasing use of crypto to circumvent sanctions is worth watching closely. If Tehran scales up Bitcoin mining or stablecoin usage for trade settlement, it could draw more regulatory scrutiny from Washington. The US Treasury has historically responded to sanctions evasion with secondary sanctions and enforcement actions.
Iran has warned of retaliatory strikes against regional energy infrastructure, which could push oil prices even higher and trigger risk-off sentiment across traditional and digital asset markets.