The recent escalation of geopolitical tensions between the US and Iran has driven international oil prices higher, triggering a chain reaction in global financial markets. Stock markets have generally declined, and the dollar index has seen its strongest weekly gain this year. Veteran market strategist Ed Yardeni points out that as oil prices break through $100 a barrel and the conflict potentially spreads to Saudi Arabia, the probability of a significant correction in the US stock market this year has increased from 20% to 35%. In an interview with Coindesk, Yardeni emphasized that high oil prices are forcing the Federal Reserve into a dilemma: if interest rates are raised to curb inflation, it may exacerbate unemployment pressure; if loose monetary policy is maintained, the risk of inflation will continue to rise. In this context, although Bitcoin has performed relatively steadily recently, if systemic risks occur in the US stock market, investors may be forced to sell risk assets, including cryptocurrencies, thereby increasing the downward pressure on BTC. At the same time, Yardeni believes that the possibility of a strong market rebound this year has fallen to only 5%. Overall, energy price volatility is becoming a key variable affecting the global economy and asset pricing.
Wall Street Strategist Warns: Oil Price Surge Could Trigger US Stock Market Turmoil, Bitcoin Under Pressure
A well-known Wall Street strategist warns that US-Iran tensions are pushing up oil prices, which could trigger a US stock market correction. Bitcoin may be subject to associated selling pressure, and the Federal Reserve faces a difficult balance between inflation and employment.