Oil and Bitcoin Markets Rocked by Strait of Hormuz Crisis and U.S. Military Move
Global markets reacted sharply this week as geopolitical tensions and financial shifts made headlines. The U.S. unveiled a major military operation to secure a critical oil route, while bitcoin surged past a key price level on strong institutional demand.
Meanwhile, oil prices fluctuated after the Strait of Hormuz closure cut global supply by millions of barrels daily.
The Strait of Hormuz shutdown has slashed daily oil production by 14.5 million barrels. In response, President Trump announced Project Freedom, a U.S.-led mission to escort neutral cargo ships through the blocked waterway. The operation will deploy guided-missile destroyers, over 100 aircraft, and roughly 15,000 military personnel.
Iran’s senior official, Ebrahim Azizi, condemned the move as a potential ceasefire breach. Despite the warning, Trump’s team reported **‘very positive discussions’** with Iranian representatives. Oil markets reacted immediately. Brent crude fell 2.4% to around $108 per barrel, while WTI held near $102. The price dip followed the U.S. announcement, easing some supply fears. In financial markets, bitcoin broke through $80,000 after a technical short squeeze wiped out over $114 million in bets against the cryptocurrency. Institutional demand also drove gains, with U.S. spot bitcoin ETFs seeing $153.87 million in inflows last week. BlackRock’s iShares Bitcoin Trust and Morgan Stanley’s MSBT ETF led the charge. Morgan Stanley’s fund alone attracted nearly $194 million in April, reinforcing bitcoin’s upward momentum.
The U.S. military operation aims to stabilise oil flows through the Strait of Hormuz, though Iran’s warning adds uncertainty. Oil prices adjusted downward after the announcement, reflecting shifting market expectations.
Bitcoin’s rally, backed by heavy institutional investment, shows no signs of slowing. The cryptocurrency’s latest surge comes as ETF demand remains robust.
