Key Takeaways
- Bitcoin and Gold crash amid geopolitical uncertainties, while Oil surges, highlighting a liquidity shift to the asset.
- Qatar’s natural gas facility suffers a major loss following an Iranian strike, which could affect 20% of its supply, with repairs expected to take 3-5 years.
- Qatar’s natural gas disaster could heighten gas scarcity and see oil prices rally higher, benefiting from the recent event.
US-Iran tensions continue to intensify, affecting the US economy and the world at large, as oil prices have skyrocketed to a yearly high of around $120, with speculation of increased inflation looming. The scarcity of oil has driven up the prices of goods and services globally.
While the US-Iran war has continued, tension around the Middle East is on the rise as this Gulf region supplies large amounts of Oil to the world. Recent news making the rounds suggested Iran recently struck a Qatar facility supplying natural gas to the world.
The strike on Qatar’s largest liquefied natural gas facility caused significant damage, wiping out around 17% of the facility’s capacity, resulting in over $26 billion in losses and potentially taking 3-5 years to rebuild.
Qatar’s Natural Gas Facility Suffers Loss What Could this Mean?
The recent Iranian strike on the Qatar gas facility has damaged 17% of Qatar’s LNG capacity for 3-5 years. Qatar accounts for approximately 20% of global LNG supply. Major Asian countries such as China and India are heavily dependent on Qatar’s LNG. Some of the countries that depend on Qatar’s gas supply include:
- China: Qatar’s top single importer. In 2025, it accounted for 29% of China’s total LNG imports.
- India: Qatar is the top supplier, accounting for roughly 42% to 47% of India’s total LNG imports as of early 2026.
- South Korea: A long-term partner, where Qatari LNG has historically made up between 21% and 37% of the country’s total LNG imports.
- Pakistan: Heavily reliant on Qatari supplies, which fulfill nearly 99% of its total LNG needs.
- Taiwan: Approximately 25% of its LNG comes from Qatar.
Some European countries, such as Italy, the UK, and Belgium, have also been heavily reliant on Qatar for LNG. This means that if Qatar’s LNG capacity is disrupted, energy crises in Asia and Europe would worsen. This could see the price of Oil skyrocket to new highs in the coming weeks, strain energy relationships.
This recent war has affected the prices of Bitcoin and Gold to the downside, as both assets could face further declines in the coming days.
Why are Bitcoin and Gold Down Today?
Geopolitical tension historically have seen the price of Gold performed well however the reverse has been the case as the price of Gold has been in a series of downtrend in the last weeks as price could potentially see more market dump towards $4,300 per ounce following an unchanged Fed interest rate but Jerome Powell hinted as inflation likely to go above the roof as a result of recent war events.
The news also saw Bitcoin crash towards its key zone of $66,500, following a strong start to the week in which the price rallied to a high of $76,000 before crashing, as the price could not flip its resistance into support.
With current events around the world on the rise, we could see Gold and Bitcoin outperform Oil in the coming weeks, as prices could surge amid rumors of looming scarcity.
FAQs
How does oil affect Bitcoin?
Oil prices do not directly affect Bitcoin prices; however, a scarcity of oil could affect the global energy market, which could also affect Bitcoin mining, allowing demand for the crypto asset to grow as the price gains some momentum to the upside.
How do conflicts in the Middle East affect the oil industry?
The Middle East conflict has led to oil scarcity, with the recent US-Iran war closing the Strait of Hormuz, through which 20% of the world’s oil supply passes, triggering a global spike in oil prices.
What will happen to crypto if the US attacks Iran?
Speculations are suggesting the price of BTC could go lower, but they have proven wrong as the price is rallying. Gold and Oil have seen strong price action over the last few days.
Will the Iran War affect crypto?
The crypto market has experienced a crash in the last few hours amid the US-Iran war, as US President Donald Trump hints at a combat operation. The crypto market could see a significant crash on Monday when it opens.
Related Read
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How Oil Supply Could Affect Crypto as Oil Eyes $100 per Barrels
