U.S. Oil Prices Spike To One-Year High, Bitcoin and Gold Dip

Oil markets surged today as the U.S.-Iran War disrupted energy routes across the Middle East, pushing U.S. crude above $78 per barrel for the first time since January 2025. The spike came as tanker traffic through the Strait of Hormuz collapsed, while Bitcoin and gold both slipped during volatile trading.

U.S.-Iran War Disrupts Supply As Oil Prices Surge

Energy markets reacted immediately as the U.S.-Iran War intensified across key shipping areas in the Middle East. U.S. oil prices climbed above $78 per barrel, the highest level since January 2025. Notably, oil has gained about 43% since December as supply concerns intensified.

Oil jumped as the U.S.-Iran war choked supply. Brent crude also rallied strongly. Prices climbed above $83 per barrel during the latest trading session. Prior to yesterday’s BTC price surge, the price had declined amid surging oil prices. The main disruption centers on the Strait of Hormuz, a crucial global shipping corridor.

Tanker traffic there has plunged more than 95% as shipowners avoid the route despite insurance availability. The International Energy Agency estimates the chokepoint normally carries about 15 million barrels of oil daily. However, the sharp drop in shipping activity now threatens supply stability.

As a result of the U.S.-Iran war, governments and refiners have started emergency planning to secure fuel availability. China has already instructed refiners to halt fuel exports to preserve domestic supplies.

Meanwhile, companies in Japan and India are exploring emergency response measures to prevent fuel shortages. Analysts warn the situation could worsen if tanker attacks or energy infrastructure damage occur. Diesel markets already show pressure. European diesel prices have surged more than 40% since the conflict escalated.

Bitcoin Price Dips But Holds Above $70K Despite Market Volatility

While oil surged on the U.S.-Iran War, crypto markets moved in the opposite direction. Bitcoin slipped slightly but remained above the $70,000 level. At the time of writing, Bitcoin traded at $71,446. The price declined by 1.53% in the past hour and by 1.26% over 24 hours. As CoinGape reported, JPMorgan suggested that the Bitcoin price is at risk of decline if the U.S.-Iran war resembles the Ukraine war market reaction.

Yesterday, the digital asset had reached around $73,000. Derivatives activity has also changed the market outlook. According to analyst Ted, perps have started to feel bullish, and spot is selling, which is not a good scenario for $BTC.

Source: Ted

However, broader Bitcoin sentiment is still strong amid the U.S.-Iran war. According to CryptoQuant, Bitcoin ETF inflows have been key to the BTC price rebound. Several hundred million dollars entered U.S. spot Bitcoin ETFs in early March. On March 4 alone, inflows exceeded $200 million.

Derivatives markets also contributed to the rally. Open interest rose sharply while funding rates turned negative, showing crowded short positions. As prices climbed, short liquidations drove aggressive short covering, accelerating the move higher.

Precious metals dipped even as geopolitical tensions intensified during the U.S.-Iran war. Spot gold prices fell below $5,100 per ounce after a volatile trading session.

The decline followed an earlier rally that pushed gold to near-record highs around $5,600 in 2026. According to Ash Crypto, over $800,000,000,000 has been wiped out of gold and silver in just 3 hours.

Despite the sharp reaction, gold prices only slipped about 0.5% from recent levels. However, the move occurred alongside large losses across precious metals markets.