Tensions in the Middle East have escalated as U.S. forces target Iranian energy facilities, prompting Iran to warn of retaliatory measures. This conflict has disrupted shipping through the Strait of Hormuz, affecting global energy supplies and industrial metals. A major aluminum smelter in the Gulf has cut production by 20% due to raw material shortages, impacting the region's supply chain.
In response to potential energy shortages, the International Energy Agency plans to release strategic oil reserves to Asian markets. Meanwhile, the U.S. economy shows signs of slowing, with GDP growth revised down to 0.7% for Q4, while core PCE inflation remains at 3.1%. Amid these uncertainties, Bitcoin has risen above $71,300, signaling a return of risk capital to the crypto market, though liquidity remains concentrated between $72,700 and $74,000.
Middle East Tensions Impact Metals, Bitcoin Surges Above $71,300
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