The conflict between the US and Iran significantly influences global markets, particularly oil and cryptocurrency.
Impact of the Conflict on Oil Prices
Since the conflict began on June 13, oil prices have surged over 10%. Analysts expect Brent prices to rise another $3-5 per barrel when markets reopen. A possible blockade of the Strait of Hormuz by Iran could further increase oil prices, affecting inflation and exerting pressure on the US Federal Reserve.
Cryptocurrency Market in Times of Uncertainty
In the wake of US airstrikes, Bitcoin sank below $100,000, marking its lowest point since early May. Ether dropped by 10% to just above $2,150. Over $1 billion in crypto positions were liquidated in a single day. Despite current panic, some experts see recovery opportunities amid geopolitical instability.
What’s Next: Monitoring Iran’s Response and the Fed's Actions
Investors are keenly watching Iran’s response and the condition of oil prices. A strong retaliation from Iran could cause a supply shock in oil and spike inflation. Federal Reserve Chair Jerome Powell will testify, and market participants will be attuned to his statements. The ongoing uncertainty may pressure the economy, complicating the Federal Reserve's situation.
The US-Iran conflict introduces uncertainty into financial markets. Investors should prepare for volatility and monitor key events in the coming days.
