Oil and gold rally as Iran locks down key oil route to US and Israeli allies

Oil markets continued to rally on Friday morning amid renewed strain in the Middle East.

Iran’s Islamic Revolutionary Guard Corps (IRGC), a key instrument of Iran’s military and regional strategy, declared that any movement through the Strait of Hormuz by vessels tied to US and Israeli allies would face a forceful response, state media FARS reported.

The group said its navy had already intercepted and redirected three container ships attempting to pass through the corridor.

The move raised concerns about prolonged interruptions on a crucial oil route.

Brent and other crude prices rose on the potential supply squeeze, pushing prices higher despite recent attempts to keep markets steady.

Brent crude, the global benchmark, hit around $111 a barrel, while WTI, the US benchmark, topped $98, according to the latest data.

Elsewhere, gold is also gaining, pushing above $4,500, per TradingView.

Crypto markets

Crypto markets are under renewed pressure, with volatility on the rise. Bitcoin, which had already dipped below $67,000 earlier, extended its decline to $65,730.

Investor sentiment continues to deteriorate, as the Crypto Fear and Greed Index remains in the “extreme fear” zone. The market value has fallen 4% to $2.35 trillion.

Weakness spread across altcoins as well. Ether slid 5% to below $1,980, while BNB and XRP each recorded losses exceeding 3% over the last 24 hours.

The strait and what flows through it

The Strait of Hormuz normally handles roughly 20.5 million barrels of crude oil and condensate per day, approximately one-fifth of global supply.

Since US and Israeli military strikes against Iranian infrastructure commenced on February 28, 2026, under what the Pentagon has dubbed Operation Epic Fury, that flow has been severely disrupted.

While Iran recently signaled “non-hostile” ships may pass, most major shipping lines remain suspended, keeping the blockage largely in place.

The disruption is nearly five times larger in volume terms than the 1973 Arab Oil Embargo, making it the most severe supply shock in modern energy history.

Brent crude stood at roughly $73 per barrel on February 27, the day before hostilities began. Within three weeks, it rocketed to a market peak of approximately $115 per barrel.

Dubai crude, a benchmark closely watched by Asian refiners, hit an unprecedented $137 per barrel during the height of the initial market panic in mid-March.

Oil prices overall are up over 40% compared with pre-war levels, a punishing increase that has forced multiple governments in Asia and Europe to impose fuel rationing and other emergency conservation measures.