US Blockade of Strait of Hormuz Triggers Oil Spike and Crypto Sell-off

Global energy markets reacted sharply on Sunday as the United States implemented a blockade of the Strait of Hormuz, a critical maritime artery responsible for approximately one-fifth of the world's oil trade. The escalation follows the failure of peace negotiations between Washington and Tehran. US President Donald Trump stated that the talks collapsed because Iran refused to dismantle its nuclear weapons program, which he identified as the only issue that truly mattered. Trump further characterized Iran's use of maritime mines and the imposition of tolls as "world extortion," subsequently ordering the US Navy to destroy the mines and intercept any vessels found to be paying Iranian tolls. Market reactions were immediate. Crude oil prices surged 9.5% to $105 per barrel within thirty minutes of the US futures market opening. Simultaneously, Bitcoin experienced downward pressure, falling to a low of $70,623, representing a 2.7% decline for the day. This latest development adds to a period of extreme volatility that began on February 28 following a US airstrike that killed Iran's Supreme Leader, Ayatollah Ali Khamenei. While Bitcoin has outperformed gold and the S&P 500 since the start of the conflict, the current geopolitical tension is triggering a renewed flight from risk assets as the situation in the Persian Gulf deteriorates.