Due to escalating hostilities in the Middle East, oil transportation and infrastructure are under increasing pressure. Global investors are worried about future market volatility. West Texas Intermediate (WTI) crude oil surged 19% this week, surpassing $100 per barrel, while US stock index futures declined. The dollar strengthened, gold prices fell, and Bitcoin (BTC) dropped to $66K.
Hostilities in the Middle East escalate, WTI crude oil breaks $100
West Texas Intermediate (WTI) crude oil opened this week up 19%, soaring to around $108 per barrel, after already recording a 36% increase last week. As the Iran conflict enters its second week, the oil market faces further turbulence risks. Major oil-producing countries are cutting output, storage centers are nearing capacity, and traffic through the Strait of Hormuz has effectively been disrupted.
Roundhill Financial CEO Dave Mazza said:
“This is no longer just about the actual closure of the Strait of Hormuz; it’s about supply chain disruptions spreading deeper into the region. This shift could cause already uneasy investors to further reduce risk positions.”
On Sunday, Iran increased attacks on neighboring Middle Eastern countries, while Israel struck fuel depots in Tehran and threatened Iran’s power grid. U.S. President Trump warned that the U.S. might consider attacking areas not previously targeted. He posted on social media that the attacks will continue “until they surrender, or more likely, collapse completely!”
(How to hedge against rising oil prices using crypto platforms and on-chain assets?)
Bitcoin drops to $66K, ETF funds flow out again
Bitcoin briefly broke above $74K last week, but has gradually declined from $68K over the weekend, and this morning dipped below $65K. Ethereum also fell below $2,000. The overall crypto market cap decreased by 1.14%, falling back to $2.28 trillion.
Bitcoin spot ETFs experienced another outflow, with a total of $570 million withdrawn over the past two days.
Amid market turbulence, the dollar strengthened, US stock futures declined, and even traditionally safe-haven gold weakened due to inflation concerns.
This article on oil prices surging 19%, WTI breaking $100, and Bitcoin dropping to $66K first appeared on Chain News ABMedia.
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