The Iranian Revolutionary Guard Corps (IRGC) has suspended oil and gas exports from the Middle East in response to what it calls 'American aggression.' This move effectively weaponizes global energy supplies, halting traffic through the Strait of Hormuz, a key chokepoint that handles one-fifth of the world's oil and natural gas trade.
The situation escalated in February 2026, when US and Israeli strikes on Iranian targets triggered retaliatory threats from Iran. The US responded by reimposing a naval blockade on Iranian ports in July 2026, prompting the IRGC to declare that energy resources would be available only if all parties can access them.
The impact has been immediate, with Brent crude prices surging from $71 per barrel to $138.21 in April 2026. The crypto market is also affected, as IRGC-affiliated networks have facilitated over $3 billion in Bitcoin and Tether transactions related to oil trading since late 2025.
This revelation creates regulatory risk for the crypto market, with potential consequences including tighter KYC requirements on exchanges, more aggressive enforcement actions against mixers and privacy protocols, and restrictions on stablecoin issuers. Tether, as a key player in these transactions, could face increased scrutiny.