Right now, the world is watching an energy crisis unfold that is shaking everything, including crypto. US crude oil has jumped above $115 per barrel. Brent crude is over $111. This surge came fast after strikes on Iran’s Kharg Island. Gas prices in Los Angeles have crossed $6 per gallon. The US average is now $4.14, up sharply from $2.98 just before the Iran conflict started on February 28.
This is no small event. The Strait of Hormuz, a key path for 20% of the world’s oil and gas, is blocked. Global oil supply has dropped by about 12 million barrels per day. That’s huge. Experts say it’s worse than past crises.
The head of the International Energy Agency (IEA), Fatih Birol, called this shock the biggest ever. He compared it to the 1973 and 1979 oil crises, plus the 2022 issues from Russia’s Ukraine invasion. In past crises, the world lost 5 million barrels a day each time. Those led to recessions. Now, it’s 12 million – double that.
“Today, we lost 12 million barrels per day — more than two of these oil crises put together.” – Fatih Birol, IEA Executive Director
March had some buffer from ships already in the strait. But April? Birol says, “there is nothing.” The real pain is just starting. He stressed the top fix is reopening the strait. Until then, pressure builds.
In LA, gas over $6 a gallon means higher costs for drivers. Nationally, the jump from under $3 shows how fast inflation can hit. This isn’t just about filling up cars. It feeds into broader price rises, hurting consumer spending and the economy.
Higher energy costs mean sticky inflation. Central banks can’t ignore it.
Crypto loves easy money: rate cuts, weak dollar, more liquidity. But the
Bitcoin shines in bull markets with loose policy. It struggles now: high inflation, strong dollar, shift to safe assets like gold or bonds. Investors flee risk like crypto for safety.
Key Bitcoin level: $65,000 is major support. If oil stays above $115, BTC risks dropping below. Any new escalations could trigger that.
Oil shocks often hurt risk assets. In 2022, energy spikes tanked crypto amid Fed hikes. Now, it’s similar but worse. Correlation data shows BTC falls when oil surges on supply fears. Charts confirm: tight link lately.
Macro headwinds:
Short-term: Brace for volatility. BTC could test $60k if oil climbs more. Altcoins will hurt worse – they drop faster in risk-off.
Longer-term: Diplomacy matters. Strait reopens? Relief rally possible. But prolonged war means recession risks, bad for all assets.
Smart moves:
Ethereum, Solana, others follow BTC. DeFi TVL drops in fear. NFTs freeze. Miners face high energy costs – oil ties to power prices.
But crypto’s edge: Global, borderless. In chaos, some see it as hedge vs. fiat inflation. Still, macro rules now.
Crypto investors are tied to geopolitics. The
Stay informed. Markets move fast. What’s your take? Share below.
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
The post Bitcoin Under Siege: Oil at $115, Gas Over $6 in LA – How Iran War is Crushing Crypto Markets Today appeared first on Blockmanity.
