Market concerns that impending military action could disrupt the initial progress in restoring energy transport through the Strait of Hormuz have pushed U.S. crude oil prices above $112 per barrel. In a highly volatile trading day, the stock market held onto slight gains, while bonds and the U.S. dollar remained largely flat. Bitcoin (BTC) surged to a nearly two-week high of $70,351 yesterday but tumbled to $68K this morning. Ethereum (ETH) also fell below $2,100.

Trump's Deadline Approaches, Oil Prices Rise, U.S. Stocks Close Slightly Higher

On April 6, U.S. President Donald Trump issued a deadline warning to Iran with harsh rhetoric: if the Strait of Hormuz is not reopened by 8:00 PM EST on Tuesday (April 8) (8:00 AM Beijing time on Wednesday), the U.S. will launch attacks on Iran's power plants and bridges.

However, according to the Islamic Republic News Agency (IRNA), Iran's official news agency, Iran has conveyed its rejection of the ceasefire proposal to the mediator, Pakistan. Iran demands a permanent end to the war, the lifting of sanctions, reconstruction efforts, and the establishment of a safe passage agreement for the Strait of Hormuz.

Concerns that imminent military action could undermine the preliminary progress in restoring energy shipments through the Strait of Hormuz drove U.S. crude oil (WTI) prices past $112 per barrel. During a volatile trading session, equities maintained modest gains, while bonds and the dollar remained relatively unchanged.

Focus This Week on Fed Meeting Minutes and PCE Index

Data shows that the U.S. service sector's economic growth slowed in March, with employment seeing its largest drop since 2023, and prices paid—an inflation indicator—rising significantly.

Mixed economic signals indicate that most businesses are facing a period of uncertainty. If the closure of the Strait of Hormuz persists, it will significantly worsen the outlook for the U.S. and global economies.

Investors' focus this week includes the release of the Federal Reserve meeting minutes on April 9 and the PCE inflation index.

Bitcoin Tumbles to $68K, ETH Falls Below $2,100

Bitcoin surged to a nearly two-week high of $70,351 yesterday but dropped to $68K this morning. Ethereum also fell below $2,100, down 0.75% over 24 hours. Market sentiment remains in the "fear" zone at 34. Until the end of the war is declared, cryptocurrencies, which are risk assets, are unlikely to see significant upside potential.

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