WTI crude rose to 111.24 per barrel as Asian markets opened, marking a 22% intraday gain. Brent traded near $110, about $40 higher than last Friday, underscoring the surge in oil prices. U.S. equity futures opened lower and the dollar strengthened, signaling a risk-off stance amid escalating geopolitical tensions. On Sunday, the Iranian Expert Assembly named Mojtaba Khamenei, the 56-year-old son of the late Ali Khamenei, as the new supreme leader, with the Revolutionary Guards pledging full obedience.
Iranian military officials said they could sustain high-intensity clashes for at least six months and would deploy more advanced long-range missiles in due course. With the Hormuz Strait effectively blocked, the United Arab Emirates and Kuwait began reducing oil production, with UAE cutting offshore output and Kuwait trimming crude and refining capacity. Israel subsequently struck Kuhak and Shanan regions and Karaji storage facilities in Tehran, according to Energy Minister Eli Cohen, who warned that some facilities remain on attack lists. Bahrain’s desalination facility was damaged by an Iranian drone attack, highlighting the vulnerability of water infrastructure in the Gulf, where many states rely on desalination for drinking water.
Late Sunday, Kuwait intercepted three ballistic missiles and destroyed two drones near an international airport. The U.S. State Department ordered the withdrawal of American personnel from Saudi Arabia, while President Trump said the United States is weighing broader airstrikes and considering deploying special forces to secure stockpiled enriched uranium. Prices above $100 a barrel have undermined the macro tailwind of rate cuts that had supported crypto markets, with March rate cuts by the Federal Reserve already deemed unlikely and June cuts appearing increasingly doubtful. As a result, the dollar remains strong and real yields higher, placing Bitcoin under renewed selling pressure and trading below $66,000 for a time.
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