Oil Prices Surge 12% and $128 Billion Wiped From Virtual Assets as Markets Reel [US-Iran War]

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

News of the death of Iran's Supreme Leader following airstrikes by the United States and Israel has been reported, and with Iran responding by blocking the Strait of Hormuz, shocks to the global economy and asset markets have become inevitable. International oil prices have already begun to surge, and demand for safe-haven assets has increased. The cryptocurrency market is also experiencing heightened volatility.

Trump Announces "Khamenei Dead," Iran Responds with "Closure of the Strait of Hormuz"... Global Oil Prices Soar

Reuters Yonhap News

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

International oil prices had already entered an upward trend. The previous day, West Texas Intermediate (WTI) closed at $67.02, up 2.78% from the previous session, and North Sea Brent crude ended at $72.87, rising 2.87%. These are the highest prices since July of last year. After the weekend, if the aftermath of the Iranian airstrikes and the death of Supreme Leader Khamenei is reflected in the market, oil prices are expected to rise sharply.

On this day, President Trump officially announced through his social networking service, Truth Social, that Iran's Supreme Leader Ayatollah Seyed Ali Khamenei had died as a result of airstrikes by the United States and Israel. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) stated 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 critical chokepoint for global energy supply. Reuters reported that "some oil companies and major trading firms have already suspended the transport of crude oil and fuel through the strait."

Some warn that international oil prices could soar to $100 per barrel. The energy analysis team at Barclays stated, "When the futures market reopens on March 2, trading could face the worst-case scenario," and analyzed that "due to the risk of potential supply disruptions stemming from worsening security conditions in the Middle East, Brent crude could surge to $100 per barrel."

Shockwaves Unavoidable for Global Economy and Asset Markets... Stronger Shift Toward Safe-Haven Assets

Reuters Yonhap News

The Iranian airstrikes have heightened risk aversion, causing significant turbulence in the cryptocurrency market. After February 28, Bitcoin at one point fell 3.8% during trading to as low as $63,038, before recovering to the $65,000 range later in the afternoon. Market analysis firm CoinGecko reported that approximately $128 billion (about KRW 185 trillion) in market capitalization evaporated from the digital asset market immediately after the airstrikes.

Conversely, the preference for safe-haven assets intensified. According to Hyperliquid, a derivatives platform operating 24/7, silver trading volume on February 28 exceeded $500 million, making it the most actively traded commodity, while gold also saw trading volume of around $140 million. Kenneth Koh, Head of Private Wealth Management at UOB Kay Hian Singapore, analyzed that "we may see a preference for safe assets such as a strengthening US dollar and Japanese yen, and capital flows into gold."

There are also concerns that a prolonged conflict between the United States and Iran could deliver a major shock to the global economy. If international oil prices surge, it is projected that global inflation rates could rise by 0.6 to 0.7 percentage points, posing a serious threat to the economies of many countries already grappling with soaring prices. Billy Leung, investment strategist at Global X ETF, stated, "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 sectors with higher volatility or greater sensitivity to the economic cycle will face even stronger downward pressure."

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