Oil Surges Above $116 as Dollar Hits 10-Month High, Crypto Shows Resilience

• Oil jumps past $116 as Middle East tensions stoke supply fears and market anxiety.
• Dollar nears 10-month high amid safe-haven demand, yen and euro weaken sharply.
• Crypto rises as investors seek alternatives, with Bitcoin and Ethereum showing gains.

Global markets opened the week on edge as oil prices surged past $116 per barrel and the U.S. dollar hovered near a 10-month high. The move comes amid escalating Middle East tensions, supply disruption fears, and growing demand for safe-haven assets across commodities and currencies.

Supply Fears Drive Oil Price Rally

Brent crude, the international oil benchmark, climbed roughly 2% in early Monday trading, extending a sharp rally that has seen prices skyrocket in recent weeks. The surge follows comments from Donald Trump, who suggested the possibility of seizing Iranian oil infrastructure. The potential action further intensifies geopolitical concerns.

“To be honest with you, my favorite thing is to take the oil in Iran, but some stupid people back in the US say, ‘Why are you doing that?’ But they’re stupid people,” he said in an interview with the Financial Times.

Trump also hinted at potential action targeting Iran’s key export hub, Kharg Island, adding to fears of supply disruptions in an already fragile energy market.

Meanwhile, Market commentators believe that as the conflict persists, oil could climb even higher to $150 to $200 per barrel. Such levels could trigger severe demand destruction and raise the likelihood of a global economic slowdown.

Dollar Strengthens as Investors Seek Safety

Equity markets across Asia tumbled as investors fled risk assets. Japan’s Nikkei index dropped around 3%, while South Korea’s Kospi fell more than 3%. Hong Kong’s Hang Seng also recorded losses, reflecting widespread concern among energy-dependent economies.

While, the U.S. dollar surged toward a 10-month high as investors rotated into safe-haven assets. The yen weakened toward 160 per dollar, while the euro also came under pressure.

Higher oil prices and a stronger dollar typically tighten financial conditions, increasing volatility across risk assets.

Crypto Markets Show Relative Strength

Despite macro uncertainty, crypto markets showed resilience. Bitcoin rose 1.39% to $67,597, while the total crypto market gained 1.33%.

Ethereum climbed 2.92% to $2,061, and XRP added 1.54% to trade near $1.36. The move suggests capital rotation into digital assets amid global instability.

XRP is also posting gains, rising 1.54% to $1.36 in 24 hours. The move is supported by growing institutional interest, fueled by recent CEO commentary and developments around potential ETF exposure.

As geopolitical tensions continue to drive volatility across traditional markets, crypto assets are increasingly positioning themselves as alternative stores of value in uncertain times.

Related: Oil Prices vs Bitcoin: Is There a Hidden Correlation in Global Markets?