Trump says oil prices will quickly fall back, but Bitcoin and the stock market have already been hit

March 9 News: As the “Epic Rage Operation” related military strikes escalate, global energy markets are experiencing intense volatility. Oil prices temporarily surged to $116 per barrel, sparking concerns over potential disruptions in Strait of Hormuz oil supplies. On Monday morning, West Texas Intermediate (WTI) crude rose by as much as 22%, and Brent crude also saw significant gains. Rystad Energy analysts warn that even if the Iran nuclear threat is resolved, shipping risks in the Persian Gulf could keep oil prices long-term at $100 to $110 per barrel.

President Trump posted on Truth Social: “Short-term oil prices are rising, but once the Iran nuclear threat is eliminated, prices will quickly fall back. The cost to the US and global security is minimal.” However, the national average gasoline price in the US has already risen to about $3.45 per gallon and is climbing further with energy market fluctuations.

Stock and cryptocurrency markets reacted strongly. On Monday, US stock index futures lost over $2 trillion in market value. Over the weekend, the crypto market’s total value decreased by about $40 billion, dropping to $2.36 trillion. Bitcoin, which hit $68,000 over the weekend, retreated to around $66,000. Ethereum fell from above $2,000 to $1,960, and most altcoins remained flat. The market generally perceives high-risk assets as sensitive to geopolitical events, and this week’s movements confirm that trend.

Inflation data further heightened market concerns. The February Consumer Price Index (CPI) will be released on Wednesday, with analysts expecting rising fuel prices to push inflation higher. The Federal Reserve’s preferred Personal Consumption Expenditures (PCE) index will be published on Friday, with an expected month-over-month increase of 0.4%, marking the second consecutive month of growth. Chicago Mercantile Exchange (CME) futures data shows a 95.5% probability that the Fed will keep interest rates unchanged at the March 18 meeting. Persistently high energy costs could complicate future rate policy decisions.

Market observers note that the surge in oil prices, stock market volatility, and Bitcoin’s retreat indicate that geopolitical tensions are gradually impacting global financial markets. Investors should closely monitor energy prices and monetary policy developments.