Iran Reportedly Wants To Use Bitcoin To Protect The World's Most Critical Crude Oil Chokepoint

• Iran is reportedly developing a Bitcoin-linked shipping insurance platform called ‘Hormuz Safe’ for vessels moving through the Strait of Hormuz.
• State-linked outlet Fars News said the initiative could generate more than $10 billion.
• The platform would reportedly issue marine insurance policies and financial responsibility certificates settled in Bitcoin.

Iran may reportedly be attempting to turn the Strait of Hormuz into a Bitcoin (BTC)-linked insurance corridor worth as much as $10 billion, according to state-linked media reports amid ongoing stalled peace negotiations with the U.S. and elevated oil prices.

Iranian outlet Fars News reported that the country’s economy ministry has been developing a platform called ‘Hormuz Safe’ designed to manage shipping activity through the Strait using marine insurance policies and financial responsibility certificates settled in Bitcoin.

The report came amid elevated crude oil prices after President Donald Trump stated on Sunday that Iran needed to “get moving” or there “won’t be anything left,” as peace negotiations between the two countries continue to be caught in limbo. 

West Texas Intermediate crude oil prices rose over 1% to $102 per barrel in early morning trade on Monday, paring gains after hitting $104 per barrel. Meanwhile, Brent crude oil prices gained 0.74% to trade near $110.28 per barrel, after going as high as $112 earlier in the day.

The United States Oil Fund (USO) moved 1% in pre-market trade. Retail sentiment around the ETF on Stocktwits dipped to ‘bearish’ from ‘neutral’ territory over the past day, while chatter stayed at ‘low’ levels. 

‘Hormuz Safe’ Could Bring Bitcoin Into Global Maritime Trade

According to the report, the platform would provide coverage for maritime cargo traveling through the Persian Gulf, the Strait of Hormuz, and surrounding waterways. Policies would reportedly include cryptographic verification and activate once payment is confirmed.

Fars News stated the initiative could generate more than $10 billion for Iran, though the report did not explain how that estimate was calculated.

Bitcoin’s price fell 2.2% in the last 24 hours to trade at around $76,700, but still outperformed altcoin majors. Dogecoin (DOGE) was hit the hardest among the top 10 cryptocurrencies by market capitalization, down 6.8% in the last 24 hours. Ethereum (ETH) fell 3.7% on the day, while Solana (SOL) and Ripple (XRP) tumbled more than 3% each. 

Retail sentiment on Stocktwits around Bitcoin remained in ‘bearish’ territory over the past day, with chatter at ‘normal’ levels. 

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