WTI crude futures surged in intraday trading as escalating tensions in the Middle East around the Strait of Hormuz stoked concerns over potential energy supply disruptions.
BlockBeats, a crypto-focused media outlet, reported on June 1 that West Texas Intermediate crude futures had jumped 8.00% during the session. WTI futures were trading at $94.35 a barrel.
The move appeared to be driven by rising tensions surrounding the Strait of Hormuz. Earlier, Iran's Tasnim News Agency reported that Iran and the so-called Axis of Resistance had decided to fully block the strait.
The Strait of Hormuz is a key route for global seaborne shipments of crude oil and liquefied natural gas. A greater risk of disruption to traffic through the waterway could affect international oil prices, inflation expectations and sentiment toward risk assets.
Markets are also watching whether the spike in oil prices could deepen uncertainty over the Federal Reserve's interest-rate path. If higher energy prices add to inflation pressures, volatility in risk assets such as stocks and cryptocurrencies could also increase.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
