Crypto Market Crash: BTC, ETH, XRP Liquidations Hit $293M As US Bombs Iran

About 512,000 barrels per day of oil production in the Gulf of Mexico have already shut down, accounting for 25% of the region’s total output, and 16% of natural gas production has been suspended. Companies such as Shell and Chevron have evacuated non-essential personnel. It is estimated that roughly 2.7 million barrels per day, or 14% of the US refining capacity, are located within or near the projected hurricane path. Currently, crude oil and refined product prices are elevated, and US refineries are operating at full capacity to fill the gap. Mizuho Securities warns that if US refining capacity is forced offline, the consequences "will be catastrophic."

On the US side, Trump stated that productive talks are ongoing with Iran, and that there will be no attack on Iran before the US midterm elections on November 3. The news pushed US Treasury yields lower, while crude oil gave back part of its gains, and gold quickly turned higher. The US has imposed a new round of sanctions on Iran, targeting 17 vessels transporting Iranian crude oil and petrochemical products. On the Iranian side, the Iranian Foreign Minister said that Iran has listened to the US response regarding the "seven-day plan" and will reply within a few days. The commander of the Islamic Revolutionary Guard Corps of Iran stated that they are ready at any time to deliver a devastating response to the enemy, and that the Strait of Hormuz is Iran's strategic red line.