Global financial markets experienced significant volatility on Wednesday as tensions between the US and Iran continued to escalate.
The Middle East crisis has become a major risk factor for global markets, with oil prices surging due to concerns about supply disruptions in the Strait of Hormuz. Brent crude oil futures briefly climbed above $98 per barrel, while WTI crude oil rose nearly 2% to $95.43 per barrel.
U.S. Treasury yields also increased, and the dollar index extended its rally as investors sought safe-haven assets. The yen neared the critical 160 psychological level, with USD/JPY breaking through this threshold briefly.
The cryptocurrency market was not immune to the global turmoil, with bitcoin falling below $65,000 and ethereum declining by nearly 5%. Analysts attribute the sharp decline in crypto prices to waning risk appetite and increased demand for traditional safe-haven assets such as gold and silver.