Finance

Energy markets reacted sharply to geopolitical instability, with Brent crude leaping nearly 6% to top $114 per barrel. Investors are increasingly concerned that disruptions in the Persian Gulf could lead to a prolonged supply shock, reversing the relative price stability seen in earlier months.

Bitcoin momentarily crossed the $80,000 threshold for the first time since January before settling back into the high $78,000 range. The rally is largely attributed to legislative progress on the CLARITY Act, a regulatory framework for stablecoins and digital assets that recently saw a key compromise in the U.S. Senate.

New York Fed President John Williams indicated that while current monetary policy is well-positioned, the war in the Middle East introduces significant uncertainty to the economic outlook. Other officials warned that a protracted conflict could drive energy and fertilizer prices higher, potentially forcing a return to interest rate hikes.