US Blockade of Strait of Hormuz Sends Oil Above $100; Bitcoin Holds $70K

Global energy markets are reeling after US President Donald Trump announced sweeping measures to blockade the Strait of Hormuz. The move, aimed at controlling future oil transport, follows a sudden collapse in diplomatic negotiations with Iran over the weekend. The strategic shift has placed the waterway at the center of US foreign policy priorities. The immediate market reaction saw oil prices surge 8%, climbing to approximately $105 per barrel. While S&P 500 futures saw a modest decline of 0.6%, the energy sector is facing extreme volatility as the US seeks to establish a controlled flow of traffic through the critical maritime corridor. This oil shock is compounding existing inflationary pressures in the United States. Recent Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data indicate that inflation is accelerating due to catalysts beyond the Middle East conflict. With the Producer Price Index (PPI) due shortly, analysts warn that the Federal Reserve may be forced to maintain a tighter monetary policy. Current CME FedWatch data suggests markets now see no rate cuts occurring before the second half of 2027. In the digital asset space, Bitcoin (BTC) demonstrated relative resilience, closing the week at approximately $70,850. This price level preserves the 200-week exponential moving average (EMA) and the previous 2021 all-time high. However, some technical analysts suggest that further price corrections may be necessary before a definitive long-term trend reversal is confirmed, citing ongoing profit-taking pressure.