US Orders Naval Blockade of Strait of Hormuz; Oil Prices Surge

Oil prices jumped sharply after President Donald Trump ordered a naval blockade of the Strait of Hormuz, one of the world's most critical energy chokepoints. The military action follows the collapse of peace talks in Islamabad, where Iran reportedly refused to abandon its nuclear ambitions. The blockade triggered immediate volatility in energy markets. On the decentralized platform Hyperliquid, WTI crude perpetual futures surged 7% to $96.40, while Brent futures climbed 6% to $96. WTI futures saw significant activity, recording $1.53 billion in trading volume, highlighting a shift toward blockchain-based price discovery during traditional market closures. The timing of the blockade is particularly critical as the International Energy Agency's (IEA) coordinated drawdown of strategic petroleum reserves is approaching its limit. These emergency releases, initiated following the outbreak of war on February 28, have previously mitigated a supply shortfall of 4.5 to 5 million barrels per day. Analysts warn that as these buffers run dry, the supply gap could widen sharply to between 10 and 11 million barrels per day if normal flows are not restored. The House of Saud has characterized such a scenario as a supply shock without precedent in the modern oil market. Beyond energy, the news has triggered a broad risk-off sentiment across global assets. Bitcoin, often viewed as a leading indicator for risk appetite, fell nearly 3% to approximately $71,000 as traders brace for inflationary pressure and instability in global growth assumptions.