Global oil markets experienced extreme volatility this week as crude prices surged and then pulled back amid evolving tensions in the Middle East. After briefly reaching nearly $120 per barrel earlier in the week, prices have eased, with West Texas Intermediate (WTI) trading around $84.15 per barrel, according to Trading Economics.
The surge was triggered by escalating hostilities involving the United States, Israel, and Iran, raising concerns over supply disruptions in a region critical to global energy flows. The Strait of Hormuz, a narrow shipping channel carrying roughly 20 million barrels of oil daily, emerged as a focal point for traders.
The sudden rally pushed the Betashares Crude Oil Index Currency Hedged Complex ETF sharply lower afterward, reflecting the rapid reversal of market sentiment. At the time of writing, the OOO share price stands at $7.88, down 21.83% from earlier highs.
OIL just crashed from $115 to $85, a ~25% drop in less than 24 hours.@loraclexyz, who shorted oil from $92 is now up $588K.@RuneKek, who’s long oil, went from profit to loss and is now down $591K.
— HodlFM (@Hodl_fm) March 10, 2026
Are you trading Oil on @HyperliquidX? pic.twitter.com/FfT4TGB8gJ
Trump signals potential de-escalation
US President Donald Trump suggested in a phone interview with CBS News that military operations against Iran could be concluding.
“I think the war is very complete, pretty much,” Trump said. “If you look, they have nothing left. There’s nothing left in a military sense.”
The comments led to a sharp 28% decline in crude from $118 to around $85 in the hours that followed, according to OilPrice. However, Trump later reinforced his hardline stance on social media, warning that
“If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.”
The oscillation of statements contributed to uncertainty in energy markets, with traders weighing the potential for both renewed conflict and diplomatic resolutions. Reports indicate that the US plans to escort tankers through the Strait of Hormuz to secure global oil supply chains, though operational details remain limited.
Gold and silver gain as safe-haven assets
While crude prices fell, precious metals rallied. Gold climbed to nearly $5,180 per ounce, reflecting a 0.9% gain on Tuesday. Silver also advanced 2.4%, aided by a slight dip in the US dollar index. Investors appear to have shifted some capital into safe-haven assets amid lingering geopolitical uncertainty and volatility in oil markets.
Market observers suggest that bullion may test a new support level near $5,000 per ounce, as attention remains on US maritime security policies and broader Middle East developments.
Crypto follows risk assets
Cryptocurrencies posted modest gains alongside traditional markets. Bitcoin reclaimed $70,000, trading around $70,426, while Ether hovered just above $2,050. Augustine Fan, partner and head of insights at SignalPlus, said,
“Crypto prices will continue to follow other risk assets without a fundamental narrative of its own in the near term, and macro leadership will still be driven by oil, which has seen a +$30 turnaround over the span of just 24 hours.”
Analysts note that the situation in Iran remains unresolved. Andri Fauzan Adziima, research lead at Bitrue, said,
“I’m expecting a strong relief rally in crypto, driven by plunging oil prices, eased inflation/geopolitical fears, and renewed risk appetite. However, doubts persist amid mixed signals from Iran and potential for prolonged uncertainty.”
On-chain commodity trading gains traction
Tokenized commodities also saw heightened activity. HyperScreener reports that perpetual futures tied to WTI crude recorded over $1.6 billion in trading volume within 24 hours. The CL-USDC contract emerged as one of the most actively traded markets on Hyperliquid, second only to Bitcoin, highlighting growing adoption of crypto-based rails for macro asset exposure.
The surge illustrates that traders increasingly leverage tokenized commodities to access global markets during periods when traditional infrastructure experiences constraints. Partnerships between exchanges and established financial institutions aim to bridge conventional and on-chain markets, signaling a gradual evolution of market infrastructure.
The coming days will likely determine the next phase for oil, gold, and crypto markets as geopolitical developments continue to shape investor sentiment and global energy flows.
Roman Zaika
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