The newly appointed Supreme Leader of Iran stated on Thursday that the country will continue to block the Strait of Hormuz as a "tool to pressure enemies." As a result, Brent crude oil prices have surged above $100 per barrel for the first time since August 2022. Meanwhile, Bitcoin has risen 7% since the conflict erupted on February 28, currently stabilizing around $71,570.
Gulf Attacks Intensify, Iran Warns Oil Prices Could Reach $200
According to X platform user @SecScottBessent, the U.S. has authorized the purchase of Russian oil to stabilize the market. Bessent also mentioned in an interview with Sky News that the U.S. Navy will begin escorting vessels through the Strait of Hormuz "as soon as militarily feasible."
Bitcoin Remains Strong, Stock Market and Gold Struggle
The U.S. stock market saw significant declines. The S&P 500 index fell 1.52% to 6,672.62 points, the Nasdaq dropped 1.78% to 22,311.98 points, and the Dow Jones decreased 1.56% to 46,677.86 points, marking its first drop below 47,000 points this year.
In contrast, gold, which surged during last year's 12-day Iran conflict, has remained relatively flat two weeks after the current conflict began. Ross Norman, CEO of Metals Daily, believes that the lack of upward momentum for gold is due to a stronger dollar and rising U.S. Treasury yields.
The U.S. Strategic Petroleum Reserve plans to release 172 million barrels of oil over the next 120 days. The start date for the U.S. Navy's escort operations in the Strait of Hormuz has yet to be determined.