Oil jumps 4% as US-Iran deadline rattles global markets
Global markets braced for impact as a U.S. deadline for Iran expired, sending oil prices soaring and traders rushing to price in escalating geopolitical risk.
Global markets are on edge after a U.S.-imposed deadline on Iran expired Tuesday evening, pushing West Texas Intermediate crude oil up more than 4% to trade above $85 a barrel. The tension built after U.S. President Donald Trump stated on the Truth Social platform that “a whole civilization will die tonight” ahead of the 8 P.M. EST deadline, sparking widespread alarm.
"This is a classic geopolitical risk-off trigger, where the primary transmission mechanism to the global economy is through energy prices," said Michael Vance, a geopolitical strategist at Horizon Dynamics, in a note to clients. "The key question is whether this is a short-term repricing of risk or the start of a sustained move higher."
The surge in oil came as Bitcoin, often touted as a safe-haven asset, showed signs of stress, clinging to the $68,000 support level without a significant flight-to-safety bid. The lack of a strong upward move suggests investors may be prioritizing liquidity and traditional safe havens like the U.S. dollar in the face of a potential military conflict.
The standoff threatens to ignite a broader conflict in the Middle East, which could severely disrupt global energy supplies. A sustained oil price above $90-$100 per barrel would introduce significant inflationary pressures, complicating the Federal Reserve's monetary policy and potentially derailing the fragile global economic recovery.
Oil Market Reacts to Strait of Hormuz Threat
The immediate market reaction centered on crude oil, the asset most sensitive to Middle Eastern instability. The Strait of Hormuz, a critical chokepoint through which approximately 21% of global petroleum liquids consumption passes daily, is the focal point of concern. Any disruption to passage through the strait could lead to a severe supply shock. Brent crude, the international benchmark, mirrored WTI's gains, also climbing around 4% as traders priced in a higher risk premium.
Bitcoin's Tepid Response
In the cryptocurrency market, Bitcoin's reaction was muted. While the digital asset held a key technical support level around $68,000, it failed to attract a significant safe-haven bid that has characterized its performance during some past macro shocks, such as the U.S. regional banking crisis. The event underscores the ongoing debate about Bitcoin's role as a reliable hedge against geopolitical turmoil.
This article is for informational purposes only and does not constitute investment advice.
Edgen Crypto·Feb 28 2026, 01:48
