- Oil surged above $110 as Iran tensions disrupted supply through the Strait of Hormuz.
- Markets fall globally as war escalation fuels inflation fears and energy uncertainty.
- Crypto weakens but holds relative stability as investors shift to risk-off positioning.
Oil prices jumped above $110 after rising tensions in the Middle East raised fears of supply disruption. The move pressured global markets and weakened risk sentiment, while crypto showed relative stability as investors reacted to inflation risks and uncertainty around the Strait of Hormuz.
Oil Prices Spike Above $110 Amid Iran Conflict
Oil rallied after U.S. President Donald Trump warned that military action against Iran could continue. Markets reacted negatively as no clear timeline was given for ending the conflict or reopening key shipping routes.
Brent crude moved above $110, while global equities declined. The jump reflected growing fears of supply disruption and prolonged geopolitical risk.
Trump said the US would meet its war goals “very shortly” while increasing military action. He added that the US would spend weeks bombing Iran “back to the Stone Ages.” Markets reacted negatively because he did not give a timeline for reopening key oil routes.
Strait of Hormuz Disruption Fuels Supply Concerns
The Strait of Hormuz remains a key focus for traders. Iran has threatened to target tankers using the route, forcing some shipments to pause. Top traders now expect longer supply shortages and higher risks. Brent crude rose more than 8% before easing slightly, showing sharp price swings.
US benchmark West Texas Intermediate followed the same pattern and briefly crossed $110. Experts say the surge reflects a correction after earlier optimism. Alberto Bellorin described it as a “clear market reality check.” He added that reopening the Strait could take months, not weeks.
Trump also urged other countries to step in and secure fuel shipments from the Gulf. He said, “To those countries that can’t get fuel… go to the Strait and just take it.” However, his remarks lowered expectations for a coordinated response. Uncertainty over supply remains, and prices continue to fluctuate.
Crypto Markets Stall Amid Rising Oil Prices
Crypto markets have slowed as rising oil prices weigh on global sentiment. Grayscale said the Iran conflict overshadowed most market activity in March. Before the escalation, investors expected stronger growth and possible rate cuts. However, higher oil prices raised inflation concerns and pushed those expectations back.
Bitcoin moved sharply with each headline and traded between the mid-$60,000 and low-$70,000 range. It has dropped about 10% from its March highs as investors pulled back from risk. Ether and other tokens followed a similar path during this period.
Even so, Bitcoin held relatively stable compared to equities. Fund inflows also remained steady, suggesting continued investor interest despite market volatility.
Related: Iran Imposes Crypto and Yuan Tolls on Strait of Hormuz Shipping
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