Tariff Uncertainty Rattles Risk Assets as Oil Gains on Supply Concerns

Trade tensions are reshaping market dynamics as the incoming administration signals aggressive tariff policies targeting major trading partners. The threat of additional levies has triggered a broad reassessment of risk appetite, with equities and cryptocurrencies facing headwinds while traditional commodities respond to supply-side pressures.

Bitcoin and digital assets have retreated sharply as investors flee riskier holdings amid the tariff uncertainty. The world's largest cryptocurrency slipped below $95,000 as geopolitical and trade concerns weighed on sentiment. Meanwhile, crypto infrastructure continues to evolve with major players expanding into new financial services and technology domains, though these developments have failed to offset the broader risk-off mood.

Oil markets are benefiting from a tightening supply outlook as geopolitical tensions and sanctions targeting key producers create structural support for prices. New production initiatives and refinery dynamics in various regions are adding complexity to the global energy picture, while the Canadian dollar's strength reflects commodity-linked currency appreciation. Equity markets face a murky outlook heading into 2025, with tariff implementation risks offsetting otherwise constructive longer-term forecasts.