JH Kim

Saudi Arabia is reportedly shifting its crude export routes to Red Sea ports as oil storage facilities in the Gulf region near capacity in the aftermath of the war with Iran. According to Walter Bloomberg on the 5th (local time), Saudi Arabia is increasing crude exports via the Yanbu port on the Red Sea coast instead of the Persian Gulf. So far this month, five very large crude carriers (VLCCs) have shipped about 10 million barrels from Yanbu—around three times February’s level. With the shipping lane through the Strait of Hormuz effectively blocked due to the military clash with Iran, oil storage facilities across the Gulf are rapidly filling up. Other Gulf oil producers are also reportedly facing a shortage of storage space. Amid tanker disruptions, Iraq has cut some crude output, and against a backdrop of global supply concerns, Brent crude has climbed to around $80 a barrel.

The U.S. Federal Bureau of Investigation (FBI) has reportedly arrested the son of the head of a government asset-management contractor on suspicion of stealing virtual assets (cryptocurrency) that had been held by the U.S. Marshals Service (USMS). According to foreign media on the 5th (local time), the FBI arrested John Daghita on suspicion of stealing virtual assets worth about $46 million. John Daghita had operated online under a pseudonym, and his father is known to be the CEO of CMDSS, which has an asset-management contract with the USMS. He is accused of transferring cryptocurrency that the USMS had seized and was holding into his personal wallet and then attempting to launder the funds. On-chain analyst ZachXBT previously raised suspicions related to John Daghita via X (formerly Twitter) in January.

The dollar is strengthening as military clashes in the Middle East heighten concerns over energy supply disruptions. On the 5th (local time), Walter Bloomberg reported that escalating tensions in the Middle East are widening inflation worries, prompting safe-haven demand to flow into the dollar. Energy supply risks have also increased as some aluminum plants in parts of the Middle East halted production due to fuel supply disruptions. According to CME Group’s FedWatch, the probability of at least two interest-rate cuts by the U.S. Federal Reserve this year stood at 36%, up from 22% last week. The Wall Street Journal Dollar Index (WSJ Dollar Index) rose 0.3%. The dollar gained 0.3% against the euro and 0.4% against the yen, strengthening against major currencies.

The three major U.S. stock indexes closed higher. The Nasdaq Composite Index rose 1.29% from the previous session on the 5th to 22,807.48. The Dow Jones Industrial Average gained 0.49% to 48,739.41, and the S&P 500 Index rose 0.76% to 6,868.60 at the close.

The U.S. Federal Reserve (Fed) released its Beige Book, which summarizes economic conditions across its 12 districts. The report indicated that the U.S. economy has continued to post moderate growth overall. According to the Beige Book released on the 4th (local time), seven of the 12 districts reported that economic activity increased at a slight to moderate pace. This is down from the January survey, when nine districts reported growth. In some districts, signs of weakening were observed due to heightened economic uncertainty, increased consumer sensitivity to prices, and reduced spending by low-income households. The labor market remained broadly stable. Some companies were found to be expanding the adoption of artificial intelligence (AI) and automation technologies to improve efficiency. On prices, the report said businesses expect the pace of price increases to ease somewhat in the near term.

U.S. President Donald Trump said the United States is in a highly advantageous position amid the military confrontation with Iran. According to Walter Bloomberg on the 4th (local time), President Trump said, “If I were to rate the current Iran war situation on a scale of 1 to 10, it’s a 15,” adding that “Iran’s missiles and launchers are continuing to be eliminated.” He went on to deliver hardline remarks, saying, “Anyone who seeks to become Iran’s leader will ultimately all be killed.” He added, “We are in a very strong position and will continue to press forward.”

U.S. President Donald Trump reportedly held a private meeting with Coinbase Chief Executive Officer (CEO) ahead of urging passage of the digital-asset (cryptocurrency) market structure bill, the CLARITY Act. According to Politico on the 4th (local time), President Trump met with Coinbase CEO Brian Armstrong a few hours before issuing a statement calling for the bill’s passage. The meeting was held behind closed doors, and specific details of the discussions were not disclosed. The CLARITY Act is known as legislation aimed at overhauling the regulatory framework for digital-asset markets and clarifying the jurisdictional authority of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Amazon has reportedly cut some staff in its robotics division. According to Walter Bloomberg on the 4th (local time), the layoffs were carried out as part of cost-cutting and a business overhaul. The company said, however, that robotics remains a strategic priority. Amazon said it has been reorganizing its structure as it winds down underperforming projects, adding that workforce reductions were unavoidable in some business units. Since 2022, Amazon has cut more than about 57,000 jobs, and recently shuttered certain projects, including Amazon Fresh and Amazon Go stores. The company said it plans to continue hiring and investing in key growth areas despite the layoffs.

The three major U.S. stock indexes are trading higher. The Nasdaq Composite was up 1.45% from the previous day at 22,843.13 points as of 03:15 on the 5th. The Dow Jones Industrial Average was up 0.63% at 48,805.12, while the S&P 500 rose 0.87% to 6,875.62.

Candidates aligned with the digital asset (cryptocurrency) industry and backed by the sector’s super PAC, Fairshake, have logged a series of victories in U.S. congressional primary elections. According to crypto-focused media outlet CoinDesk on the 4th (local time), former Department of Justice attorney Jessica Steinmann—endorsed by President Donald Trump—won the Republican primary in Texas’s 8th congressional district with about 70% of the vote. Federal Election Commission (FEC) filings show Fairshake provided more than $750,000 in support for Steinmann. Rep. French Hill, an Arkansas Republican who chairs the House Financial Services Committee, also won his primary with 77% of the vote, backed by more than $400,000 from Fairshake. In North Carolina, Republican Rep. Tim Moore won with 83% of the vote. He has previously received an 'A' grade in a digital-asset policy scorecard.

The US banking industry has voiced opposition to the Federal Reserve’s approval of a master account for cryptocurrency exchange Kraken. According to Eleanor Terrett, host of Crypto in America, on the 4th (local time), the Independent Community Bankers of America (ICBA), which represents small US banks, said that “providing master accounts—traditionally limited to federally insured depository institutions subject to stringent regulation—to nonbanks and cryptoasset firms could pose risks to the banking system.” The Bank Policy Institute, a banking policy group, also took issue with the Federal Reserve Bank’s decision-making process. The group said, “The Federal Reserve Bank made its decision before completing the Board of Governors’ formal process for soliciting input,” adding that “this violates the policy requiring public comment on major changes related to the payments system.” Previously, Kraken Financial, Kraken’s banking arm, said it had secured approval for a “master account,” which grants access to the Federal Reserve’s core payments system.

Iran claimed it attacked more than 10 vessels, including oil tankers. On the 4th (local time), Walter Bloomberg, citing Iran’s state broadcaster IRIB, reported that the Iranian military recently carried out strikes targeting more than 10 vessels, including oil tankers, in waters near the Strait of Hormuz. The targets were said to include ships involved in oil transport. Tensions are rapidly rising along Middle Eastern sea lanes in retaliation for recent U.S. and Israeli military operations. The Strait of Hormuz is known as a critical energy corridor through which about 20% of the world’s seaborne crude oil shipments pass. In fact, the report said attacks on oil tankers and merchant ships have continued recently in the area, sharply reducing vessel traffic. Some global shipping companies have even temporarily suspended transits through the Strait of Hormuz due to safety concerns.

Stablecoin payments startup Cyclops has secured strategic funding. According to crypto media outlet The Block on the 4th (local time), Cyclops raised $8 million. Participants in the round included Castle Island Ventures, F-Prime and Shift4 Payments. Cyclops is developing a platform that enables payments companies to use stablecoin settlement and digital-asset payment capabilities without having to build or maintain separate blockchain infrastructure. The company plans to use the platform to help merchants adopt digital asset-based payment capabilities more easily.

Crude shipments through the Strait of Hormuz have been halted due to the conflict involving Iran, and Gulf oil producers’ storage facilities are reportedly nearing capacity at a rapid pace. According to Walter Bloomberg on the 4th (local time), Iraq has already curbed output in part, while Saudi Arabia and the United Arab Emirates (UAE) are also seen as potentially moving to scale back production in the coming weeks. With exports blocked, available storage capacity is being depleted quickly. International oil prices have been rising, with crude futures topping $85 a barrel to the highest level in about 19 months. However, after reports that Iran signaled the possibility of peace talks, prices gave back part of the gains to around $82. Total crude storage capacity across the Gulf region is estimated at about 100 million barrels, but usable capacity is said to be lower once facility locations and operational constraints are taken into account. Storage at key export terminals in Saudi Arabia—including Ju'aymah and Ras Tanura—are also filling up quickly. JPMorgan warned that, absent alternative export routes, some producers could reach storage limits within about three weeks.

The Iranian government has denied reports that its Intelligence Ministry contacted the U.S. Central Intelligence Agency (CIA) to try to initiate negotiations. According to Walter Bloomberg on the 4th (local time), Iranian authorities said claims that the Intelligence Ministry proposed talks to the CIA are "not true." The report was said to have surfaced as tensions between the United States and Iran have recently intensified. The United States and Iran have remained in a state of heightened tension over Iran’s nuclear program and the risk of military conflict, while some diplomatic channels have proceeded via indirect talks through third countries such as Oman. Iran emphasized that there are no official plans for negotiations or contact, dismissing the claims as "baseless speculation."

The three major U.S. stock indexes closed lower. On the 4th, the Nasdaq Composite Index fell 1.02% from the previous session to 22,516.69. The Dow Jones Index ended down 0.83% at 48,501.27, while the S&P 500 Index finished 0.94% lower at 6,817.13.

According to Bitcoin Magazine, a U.S. media outlet specializing in digital assets (cryptocurrencies), the governor of Indiana has signed legislation (Bill 1042) granting public pension funds the option to invest in digital assets on the 3rd (local time).

The three major U.S. stock indexes are trading lower. As of 04:38 on the 4th, the Nasdaq Composite is down 1.20% from the previous session at 22,475.82 points. The Dow Jones Industrial Average is down 0.90% at 48,464.62, while the S&P 500 is down 1.03% at 6,810.63.

The U.S. government is reported to be reviewing a plan for the U.S. military to escort oil tankers and gas carriers transiting the Strait of Hormuz. The move follows disruptions to maritime transport driven by threats from Iran, which have pushed up energy prices. On the 3rd (local time), Walter Bloomberg reported that the Trump administration is discussing measures to deploy the U.S. Navy to protect vessels transporting crude oil and gas. The administration is also considering introducing a government-backed insurance program to keep shipping operations running. Crude prices have recently risen by nearly $10 a barrel. Continued attacks on vessels and energy infrastructure have heightened concerns about additional supply shocks. If the report materializes, the operation is expected to focus on protecting merchant ships from missile and drone threats.

The Financial Action Task Force (FATF) warned in a recent report that cases of stablecoins being used to evade sanctions and launder money are on the rise. According to CoinDesk, a media outlet specializing in virtual assets (cryptocurrencies), the FATF said, “Stablecoins are currently the virtual asset most frequently used by multiple countries, including Iran and North Korea, for illicit transactions,” adding that “stablecoins account for a substantial share of on-chain illicit activity.” The report estimates that, as of 2024, the scale of fraud and illegal activity involving stablecoins amounted to about $51 billion, noting that as stablecoin adoption expands, the potential for criminal misuse is also increasing. The FATF stressed that “as stablecoin adoption accelerates, regulators in each country must swiftly close compliance gaps.”

U.S. President Donald Trump said international oil prices could drop below their previous levels if the war with Iran comes to an end. According to Walter Bloomberg on the 3rd (local time), President Trump said, "Oil prices may rise briefly, but ultimately they will fall," adding, "When the war ends, they could fall even further than before." With volatility in global oil prices increasing amid heightened tensions in the Middle East, Trump's remarks are seen as underscoring the possibility of stabilizing energy markets after the conflict subsides.