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Oil Holds Near $85 as Hormuz Disruption Rattles Global Markets

Rising bond yields show investors are pushing back expectations for Federal Reserve rate cuts as the conflict persists.

Overview

  • West Texas Intermediate jumped 8.5% on Thursday to about $81 a barrel and Brent neared $85, marking a roughly 15% weekly surge before a modest pullback.
  • The Strait of Hormuz remains effectively shut to tanker traffic, with Iran’s Revolutionary Guard warning it will attack ships that try to pass.
  • Washington pledged naval escorts and political‑risk insurance for tankers and granted a temporary waiver allowing stranded Russian oil to be sold to India until April 3, while officials said further steps, including reserve releases, are under review.
  • U.S. stocks fell Thursday (S&P 500 down 0.6%, Dow off 784 points) and Asia opened mostly lower Friday, as Treasury yields climbed and markets repriced fewer near‑term Fed cuts.
  • Bitcoin’s war‑week rally to $73,000–$74,000 faded to roughly $70,000–$71,000 after strong ETF inflows and Kraken Financial’s Fed master account approval helped lift prices earlier.