Crude oil prices surged more than 10% on Thursday, nearing $100 per barrel, as concerns intensified over potential disruptions to shipping through the Strait of Hormuz amid escalating tensions between the U.S. And Iran. President Trump stated, “Stopping Iran is of more concern to me than oil prices,” as the conflict continues to impact global markets.
The price increase followed a statement by Mojtaba Khamenei, in his first public address since being appointed Iran’s supreme leader, calling for the Strait of Hormuz to remain closed. The strategically vital waterway is a key route for global oil tankers and any prolonged closure would significantly impact energy supplies.
“It’s becoming clear to everyone that the Strait is far from under control and potentially impossible to control without severe concessions to Iran, boots on the ground, or huge military risks,” said Quinn Thompson, founder of Lekker Capital. Maritime records indicate only two vessels not linked to Iran or Russia have attempted passage through the strait since Trump vowed to “ensure the free flow of energy” last Friday.
The U.S. Military has taken direct action in response to perceived threats. The Pentagon announced it had sunk 16 mine-laying ships near the Strait of Hormuz after Trump threatened Iran over reports of mines in the key shipping route. Trump wrote on Truth Social, “I am pleased to report that within the last few hours, we have hit, and completely destroyed, 10 inactive mine laying boats and/or ships, with more to follow!” U.S. Central Command later confirmed the destruction of a total of 16 vessels.
This action followed Trump’s warning that any attempt by Iran to place mines in the waterway would be met with a response “at a level never seen before.” The U.S. Has reportedly been using technology and missile capabilities previously deployed against drug traffickers to eliminate any vessels attempting to mine the strait.
Amidst the geopolitical turmoil, Bitcoin has shown relative resilience, holding just above $70,000 even as other risk assets experienced sell-offs. CoinShares’ head of research, James Butterfill, noted that oil prices have become the dominant variable in global asset pricing, eclipsing the labor market as the primary driver. He argued that a weaker-than-expected U.S. Payroll report would typically prompt expectations of faster Federal Reserve rate cuts, but investor focus remains fixed on rising energy costs.
Analysts suggest institutional investors are increasingly seeking exposure to the financial utility of Bitcoin beyond its price volatility. Dom Harz, co-founder of layer-2 blockchain BOB, pointed to growing interest in Bitcoin-based financial applications that could allow users to spend, save, and earn using the network.
Meanwhile, financial concerns extend beyond the Middle East. Morgan Stanley capped redemptions at its $8 billion North Haven Private Income Fund, joining a growing list of financial institutions facing similar pressures. Shares of Morgan Stanley fell 4% on Thursday, leading declines in the financial sector, with JPMorgan, Citigroup, and Wells Fargo also experiencing losses. Private equity firms KKR, Apollo Global, and Ares Management saw declines of 3% to 4%.
Gold prices decreased by 0.6%, and the 10-year U.S. Treasury yield rose by three basis points to 4.23% as of Thursday afternoon. The situation in the Strait of Hormuz remains unresolved, with Iran maintaining its position and the U.S. Continuing to assert its commitment to ensuring freedom of navigation.
