Geopolitical Tensions Spike as Hormuz Blockade Drives Oil Above $100, Pressuring Crypto

Global markets are reacting sharply to a significant escalation in Middle East tensions following a U.S. blockade of the Strait of Hormuz. The move has immediately impacted energy markets, pushing Brent crude oil prices back above the $100 per barrel threshold. This geopolitical instability is creating a strong inverse correlation between energy prices and risk assets. As oil and the U.S. dollar climb, investors are retreating from volatile assets, including equities and cryptocurrencies, which have been highly sensitive to the conflict with Iran over the past month. Bitcoin (BTC) struggled to maintain its upward trajectory over the weekend, failing to break through the key resistance level of $74,000. The asset recently traded around $70,600, remaining within a broad trading range of $63,000 to $75,000 that has persisted since early February. The sell-off extended to the broader altcoin market. Ether (ETH), which had reached a high of $2,320 on April 11, tumbled to $2,190 as market participants shifted toward safer havens. Analysts note that the crypto market's inability to break above $75,000 suggests a ceiling on bullish sentiment amidst ongoing geopolitical uncertainty. The market remains highly sensitive to further developments regarding the blockade and its impact on global trade.