The weekend drone attack on Saudi Arabia’s oil production facilities has slashed global oil supplies by five percent, temporarily sending the price of Brent crude up twenty percent. The attack also prompted a one percent rise in the price of gold. For Bitcoin, which is often touted as a virtual form of gold, the Saudi oil attacks will prove a crucial test of the asset’s safe-haven bona fides.
Iran has denied any involvement, with the Iranian-aligned Houthi rebels in Yemen claiming responsibility. The sophisticated nature of the attacks, and the direction from which they appear to have been launched, have cast some doubt on those claims.
The U.S. administration has stopped short of blaming Iran, but there is no denying the Islamic Republic has both the means and the motive to have taken the brazen move.
Cryptocurrency has faced recessionary fears and worries over unforeseen complications from a no-deal Brexit, but it has yet to face a real geopolitical crisis. How will bitcoin react?