Crude oil prices extended their rally for the third straight session on Friday, with Brent crude rising 1.1% to $83.43 per barrel and West Texas Intermediate climbing 0.8% to $77.91. The surge reversed earlier optimism that the Strait of Hormuz might fully reopen, after fresh reports revealed Iran’s Islamic Revolutionary Guard Corps struck “hostile targets” near Qeshm Island and the Iranian parliament began reviewing legislation to ban U.S. and Israeli-linked vessels from the critical waterway.
The proposed bill would impose penalties of up to 20% of cargo value on violators, effectively blocking American and Israeli ships from a chokepoint that handles roughly one-fifth of global oil and LNG shipments. “Deals to reopen the Strait of Hormuz remain elusive, with investors teetering in the balance,” said Rob Haworth, senior investment strategy director at US Bank Asset Management Group, noting that traffic remains low and a durable agreement is far from certain.
Additional supply pressures came from Yemen’s Houthi attacks on Saudi infrastructure and a Ukrainian drone strike on a major Russian refinery, adding to fears of wider energy disruption. Meanwhile, China boosted its crude imports by 22% in July to 35.73 million tons, signaling that Beijing is beginning to refill its strategic petroleum reserves after staying largely on the sidelines during the US-Iran conflict. That demand-side push gave further support to prices.
For crypto markets, the oil spike injects new macro uncertainty. Rising energy costs can fan inflation expectations, potentially forcing the Federal Reserve to maintain higher interest rates for longer, a headwind for risk assets. Conversely, geopolitical instability and a flight from traditional safe havens could drive some capital toward decentralized alternatives. The immediate impact appears neutral, but sustained oil volatility could weigh on investor sentiment across digital assets.
