Middle East Tensions Send Crypto Markets into a Tailspin

The crypto market's brief rally following a US-Iran ceasefire deal has come to an end as tensions in the Middle East continue to rise. The recent Israel-Lebanon conflict has led to a surge in oil prices, which may prompt the Federal Reserve to consider rate hikes.

Oil prices surged 2.8% and 2.5% for WTI and Brent crude respectively, reversing most of the previous session's 16% plunge. The Strait of Hormuz, a key shipping route, has been blocked, with over 800 vessels stuck in the Gulf awaiting clarity on safe passage.

The Federal Reserve's minutes from its March meeting showed growing concern among policymakers about persistent inflation. Some officials argued that the Fed should keep rate hikes on the table if oil prices stay elevated, which could weigh on risk assets like Bitcoin.