Ripple falls over 1% on the Iran war concerns

Most cryptocurrencies declined during Thursday’s trading as risk appetite weakened amid the escalating impact of the war and military operations between the United States and Iran, particularly on global energy supplies.

Two tankers reportedly caught fire in Iraqi waters in a clear escalation of Iranian attacks that have disrupted energy supplies in the Middle East, pushing oil prices sharply higher during the day.

Iran’s new Supreme Leader, Ayatollah Mojtaba Khamenei, renewed threats of retaliation for what he described as the “blood of martyrs,” while confirming that the Strait of Hormuz would remain closed and that attacks on US bases would continue.

As oil prices rose above $100 per barrel due to the Iran war, the closure of the Strait of Hormuz, and supply disruptions, concerns have increased that inflation could rise significantly in the United States, raising the possibility of a 1970s-style stagflation scenario.

US Energy Secretary Chris Wright told CNBC that the US Navy is “not ready” at this time to escort oil tankers through the Strait of Hormuz, while also ruling out the possibility of oil prices rising to $200 per barrel.

Government data released today showed that initial US jobless claims fell slightly to 213,000 last week, compared with expectations that they would remain unchanged at 214,000.

Investors are now pricing in only one Federal Reserve interest rate cut of 25 basis points this year, compared with expectations of two cuts before the Middle East conflict erupted.

In trading, Ripple fell 1.2% to $1.37 as of 20:46 GMT on the CoinMarketCap platform.