"Already in Turmoil": Oil Prices Surge 12%, $128 Billion Wiped from Crypto Market (Comprehensive) [US-Iran Airstrikes]

Khamenei's Death and Hormuz Blockade

Global Oil Prices Already in Turmoil


WTI Surges 12% in OTC Trading

Safe-Haven and Cryptocurrency Markets Also Roiled

On the 28th (local time), a photo of Iran's Supreme Leader Ayatollah Seyed Ali Khamenei, who is reported to have died due to airstrikes by the United States and Israel. Photo by AP News Agency

Following reports of the death of Iran's Supreme Leader due to airstrikes by the United States and Israel, and Iran's retaliatory blockade of the Strait of Hormuz, a shock to the global economy and asset markets has become inevitable. International oil prices have already begun to surge, and there is a growing preference for safe-haven assets. The cryptocurrency market is also experiencing increased volatility.

Trump Announces "Khamenei Dead," Iran Responds with "Strait of Hormuz Blockade"... International Oil Prices Soar

Reuters Yonhap News

According to Bloomberg News on February 28 (local time), while the international crude oil futures markets were closed for the weekend, West Texas Intermediate (WTI) crude oil traded as high as $75.33 per barrel in the over-the-counter futures market. This is about 12% higher than the previous day's closing price.

International oil prices had already entered an upward trend. On the previous day, WTI closed at $67.02 per barrel, up 2.78% from the previous session, while Brent crude rose 2.87% to $72.87 per barrel. These are the highest prices since July last year. If the impact of the Iranian airstrikes and the death of Supreme Leader Khamenei is reflected in the market after the weekend, international oil prices are expected to rise significantly.

That day, President Trump officially announced through his social networking service, Truth Social, that Iran's Supreme Leader Ayatollah Seyed Ali Khamenei had died due to airstrikes by the United States and Israel. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) announced that it had implemented a blockade of the Strait of Hormuz.

The Strait of Hormuz, through which about 20% of the world’s seaborne crude oil passes, is a crucial chokepoint for global energy supplies. Reuters reported, “Some oil companies and major trading firms have already halted crude oil and fuel shipments through the strait.”

Some warn that international oil prices could soar to $100 per barrel. The Barclays energy analysis team noted, “When the futures market reopens on March 2, trading could be in a worst-case scenario,” adding, “Due to the potential supply disruptions stemming from escalating security concerns in the Middle East, Brent crude could surge to $100 per barrel.”

Shock to Global Economy and Asset Markets Unavoidable... Intensifying Shift Toward Safe-Haven Assets 

Reuters Yonhap News

As risk aversion spread following the Iranian airstrikes, the cryptocurrency market also experienced significant turbulence. Bitcoin, after February 28, at one point fell 3.8% intraday to $63,038 before recovering to the $65,000 range by the afternoon. According to market analysis firm CoinGecko, about $128 billion (approximately 185 trillion won) in market capitalization evaporated from the digital asset market immediately after the airstrikes.

Conversely, the shift toward safe-haven assets has intensified. According to the 24-hour derivatives platform Hyperliquid, silver trading volume exceeded $500 million on February 28, making it the most actively traded among commodities, while gold saw about $140 million in trades. Kenneth Koh, Head of Private Wealth Management at UOB Kay Hian Singapore, analyzed, “There could be a surge in demand for safe-haven assets such as a stronger US dollar and Japanese yen, as well as capital flows into gold.”

There are also concerns that a prolonged standoff between the United States and Iran could deliver a major shock to the global economy. If international oil prices surge, global inflation could rise by 0.6 to 0.7 percentage points, dealing a further blow to economies already struggling with soaring prices. Billy Leung, Investment Strategist at Global X ETF, said, “This situation will be particularly negative for Asian markets, which are highly dependent on energy,” adding, “Global stock markets are expected to open lower, and the pressure to decline will be even greater for highly volatile or cyclical sectors.”

This content was produced with the assistance of AI translation services.