Energy Prices Surge, Stoking Inflation Fears
Oil once again approached the $100-per-barrel threshold, putting energy markets under pressure. U.S. officials signaled no plans to restrict crude exports, quickly reversing previous sharp declines. Rising energy costs have strengthened inflationary expectations, leading to speculation that central banks may delay anticipated interest rate cuts as they reassess monetary policy.
Stocks and Precious Metals Take a Hit
Mounting uncertainty amplified selling pressure in equity markets. The S&P 500 and Nasdaq both dropped roughly 1% in early trading, edging closer to the lowest levels seen in 2026. Investors are bracing for the broader economic fallout from an energy shock, and their aversion to riskier assets has markedly intensified.
Precious metals did not escape the rout. Gold tumbled 5% to around $4,500 per ounce, while silver slumped 6.6%. Both pulled into a sharp correction after their recent strong gains, signaling that investors are broadly offloading risk across asset classes.
Cryptos Show Relative Stability
Compared to equities and commodities, digital assets displayed relative steadiness. Bitcoin slipped 2.6% to trade at $69,400, while top tokens including ether, XRP, BNB, and solana held their losses below 3%. The CoinDesk 20, a broad market index, declined 2.1% — underscoring that crypto has weathered the storm with less volatility than traditional markets.
Crypto-related stocks also declined, though losses remained modest. Coinbase shares fell 1.7%, Strategy lost 2.6%, and Circle — the stablecoin issuer — dropped 6%, pulling back after more than doubling in value over the last three weeks.
Analysts: Oil Price Direction Drives Sentiment
Alvin Kan, Chief Operating Officer at Bitget Wallet, remarked that the simultaneous declines in gold and Bitcoin suggest investors are not simply flocking to safe havens but instead broadly scaling back risk. "As energy prices climb, inflation expectations are mounting — creating an environment where rates could remain higher for longer and liquidity may tighten," Kan said.
According to Bryan Tan, a trader at Wintermute, Bitcoin actually outperformed gold by about 20% during the initial stage of the Iran-related tensions. However, the market's inability to sustain a move above $75,000 has kept overall sentiment cautious. "Each new headline about the conflict is rapidly shifting market sentiment. The strong correlation with oil prices suggests that, at present levels, maintaining defensive positions could prove effective," Tan explained.