Oil prices retreated after a group of major economies unveiled coordinated steps to steady global energy markets, lending support to digital assets.
Bitcoin led the crypto rebound, climbing to $70,800—up over 1%—after bouncing from earlier lows below $68,900. Broader market gains were more subdued, with Ethereum, XRP, and Solana each posting increases of less than 1%, lagging behind bitcoin.
Crude markets moved lower, as West Texas Intermediate crude dropped nearly 2% to $93.80 and Brent crude followed with similar declines. The move came after the U.K., France, Germany, Italy, the Netherlands, and Japan pledged to coordinate efforts to stabilize supply and safeguard shipping routes through the Strait of Hormuz.
In a statement from the office of Keir Starmer, leaders condemned recent attacks attributed to Iran and called for an immediate halt to escalating tensions. Meanwhile, U.S. Treasury Secretary Scott Bessent indicated that the U.S. could ease restrictions on Iranian oil shipments and potentially release crude from its Strategic Petroleum Reserve.
Earlier in the week, the Federal Reserve flagged increased uncertainty surrounding growth and inflation, prompting markets to dial back expectations for rate cuts. This has left both crypto and traditional risk assets more sensitive to fluctuations in oil prices.
Despite the recent decline, geopolitical tensions in the Middle East continue to drive uncertainty. WTI remains near a key support level around $92, still elevated compared to pre-conflict levels. Analysts at Mott Capital Management noted that oil is holding a critical technical zone aligned with prior highs and short-term trends, suggesting prices could retain an upward bias if support holds. They added that options market positioning points to the potential for further upside.
At the same time, equity markets are flashing warning signs. The S&P 500 has fallen below its 200-day simple moving average for the first time since May last year, signaling weakening momentum. A sustained rise in risk aversion in equities could spill over into crypto and broader financial markets.
