Strait of Hormuz Crisis Sends Oil Price to $110 While Bitcoin Price Holds Near $67K
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The ongoing U.S.-Israel and Iran war is starting to affect global markets. After Iran blocked the Strait of Hormuz, crude oil prices jumped 17% to nearly $110. Because of this spike, veteran strategist Ed Yardeni has increased the chances of a U.S. stock market crash to 35%.
Meanwhile, Bitcoin is showing surprising strength, holding near $67K despite rising tensions.
Oil Surges Near $110 as Middle East Conflict Escalates
Today, crude oil prices jumped 17% in a day, reaching their highest level since July 2022, as tensions in the Middle East increased. The rally followed a series of military escalations in the Middle East involving the U.S, Israel, and Iran, raising fears of a major supply shock.
At the same time, oil supply has dropped across the region. An Iranian drone strike forced Saudi Aramco to shut its Ras Tanura Refinery. Oil output in Iraq also fell sharply, while Kuwait Petroleum Corporation reduced shipments.
Meanwhile, the United Arab Emirates is managing offshore production to handle storage limits, while Bahrain stopped some shipments after a refinery fire.
These supply disruptions have pushed global oil prices sharply higher.
U.S. Market Crash Odds Rise to 35%
Amid the growing uncertainty, veteran market strategist Ed Yardeni warned that the probability of a U.S. market crash this year has risen to 35%, up from 20% previously. At the same time, he lowered the chances of a strong crypto market rally to just 5%.
According to Yardeni, the U.S. economy is facing two problems: rising inflation from high oil prices and slowing economic growth. This could put pressure on stocks and cryptocurrencies.
Odd of this crash can be seen in the Asian markets too. Japan’s Nikkei 225 index fell over 6%, while South Korea’s Kospi fell nearly 8%
Meanwhile, traders betting on Polymarket see a 72% chance that oil could reach $120 by the end of March.
Bitcoin and Major Cryptos Stay Stable Despite Market Shock
Despite the market chaos, the Bitcoin price stayed stable near $67,278, rising about 1% in the last 24 hours.
Bitcoin has often fallen alongside stocks during major risk-off events, despite its reputation as a hedge. If geopolitical tensions continue, analysts believe crypto markets could face additional downside pressure, even touching $60K.
Other major cryptocurrencies also saw small gains. Ethereum rose to around $2,007, XRP moved to $1.35, Solana climbed to $84, and Dogecoin increased to about $0.091.
