As the oil market continues to tighten, choking supply and driving up prices, prices have now topped $100 per barrel. Bitcoin experienced a short rally over the weekend, posting a recovery from the crash in October from all-time highs. At the time of writing, Bitcoin was trading at $74,155, up by more than 3%.
The update comes as Iran continues to keep the Strait of Hormuz closed, warning that the route will not be open to any tankers and ships from the U.S. and Israel.
The rally in Bitcoin and oil took place after U.S. President Donald Trump said on Saturday that a coordinated bombing campaign was conducted in Iran.
Source: TruthSocial
“Moments ago, at my direction, the United States Central Command executed one of the most powerful bombing raids in the History of the Middle East, and totally obliterated every MILITARY target in Iran’s crown jewel, Kharg Island,” said Trump.
Prices of crude indexes either neared the $100 price mark or crossed it. According to OilPrice, increases were as follows:
- WTI Crude: $98.80 (+0.09%)
- Brent Crude: $104.3 (+1.12%)
- Murban Crude: $116.6 (+1.96%)
Russian oil benefits from 30-day waiver and Strait of Hormuz block
Urals oil—the benchmark for Russian oil—posted an increase of 5% and is now in high demand, trading at $93.58. While Russian oil still remains under sanction, the U.S. has granted a temporary 30-day waiver that allows the commodity to move as countries around the world scout for a cheap supply.
Murban crude previously touched $120 per barrel and after a brief dip, still remains sustained by the conflict-induced rally. Oil operations around the globe are disrupted, and multiple facilities in the Middle East have cut back on oil production as the conflict continues to intensify.
Maersk and Hapag-lloyd posts gains in share prices
Shipping companies Maersk and Hapag-lloyd posted share price increases of 6.67% and 3.64% respectively, a week after Maersk said in an official update that it would be not be accepting containers at its usual locations.
“In light of the evolving situation affecting navigation and port operations in and around the Strait of Hormuz, and in order to protect the safety of our vessels, crews and your cargo, Maersk is implementing temporary empty-container return arrangements.” read the notice.