Oil Markets Brace for $120 Barrel as U.S. Strikes Iran

Global oil markets are experiencing heightened tension following U.S. airstrikes on three of Iran’s nuclear facilities: Fordow, Isfahan, and Natanz. The military action, announced by President Donald Trump, has escalated geopolitical tensions in the Middle East and raised concerns about a potential closure of the critical Strait of Hormuz. The Strait of Hormuz is a narrow sea passage between the Persian Gulf and the Gulf of Oman, providing the only water access from the Persian Gulf to the open ocean. It has historically been one of the most strategically important shipping bottlenecks, with roughly 20% of the world’s oil supply flowing through it. Any disruption to this passage could send crude prices soaring to $120–$130 per barrel, threatening global economic stability and stoking inflation, as soaring oil prices translate into higher costs of everyday goods for consumers.

Despite the U.S. joining forces with Israel to attack Iran’s nuclear program, the global benchmark Brent crude remains relatively stable for now, trading at around $72 per barrel. The situation remains highly volatile as markets await further clarity on Iran’s response and the status of the Strait. The price of Bitcoin has shown resilience, currently trading above $102,600 and remaining steady even as traditional markets brace for potential shocks. This stability reinforces the growing perception among investors that Bitcoin is no longer just a speculative asset but is increasingly being recognized as a safe-haven option in times of geopolitical turmoil.

Bitcoin’s fixed supply, decentralized nature, and rising adoption have contributed to its new role as a hedge against inflation and global instability. As oil prices and traditional assets face turbulence, Bitcoin’s calm performance suggests that it is increasingly being viewed as a complementary risk-off alongside gold. This is a trend that will likely strengthen as the global economy becomes increasingly digital and interconnected. Moreover, since the Bitcoin and crypto markets are open to trade 24/7, they are often the first to be sold off over the weekends as investors flee to safety. Bitcoin’s price barely flinching amid the news of the U.S. airstrikes demonstrates the undeniable maturation of the market.