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Strait of Hormuz Blocked — Markets Into Risk Mode
The blockage of the Strait of Hormuz changes the equation completely. Nearly 20% of global oil supply flows through that route. Markets don’t wait for confirmed shortages — they price probability. And right now, probability favors disruption.
Iran's Missile escalation near U.S. airbases in Gulf regions adds another layer of uncertainty. When geopolitical instability overlaps with energy supply risk, traders immediately rotate into:
• Precious metals
• Energy exposure
• Defensive positioning
Gold surged to 5420, silver to 96, and oil exploded 10–13% in a single move.
Meanwhile, U.S. stock futures are under pressure ahead of the open. Higher oil means higher inflation expectations. Higher inflation reduces the probability of near-term rate cuts. That directly pressures tech-heavy indices.
Now let’s talk about Bitcoin.
$BTC is trading near 66K after failing to hold 67K. In pure risk-off environments, crypto initially behaves like a high-beta asset, not digital gold. Liquidity tightens first. Narrative shifts later.
If U.S. equities open weak, BTC could see volatility expansion.
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