Tariff Threats Roil Markets as Oil Surges and Bitcoin Retreats

Risk sentiment deteriorated sharply this week as trade policy uncertainty took center stage. Proposed tariffs on major trading partners sparked a broad reassessment of market positioning, with equities and cryptocurrencies both facing headwinds while energy markets moved in the opposite direction. The combination of geopolitical tensions and shifting monetary expectations created divergent pressures across asset classes.

Oil prices climbed amid structural supply concerns and tightening global inventories. The U.S. Strategic Petroleum Reserve has fallen to its lowest level since 1982, while energy security challenges in Europe and production pressures in key regions have tightened the market. A stronger dollar, typically a headwind for commodities, was offset by crude's appeal as a hedge against the uncertain macro backdrop and hawkish central bank signals. Diesel costs reaching record levels added further upward pressure on energy markets.

Bitcoin and broader crypto assets retreated as risk appetite soured. The leading digital asset slipped below $95,000 as investors reassessed exposure to riskier assets in light of tariff threats and their potential economic consequences. While institutional adoption continued with major financial players expanding crypto infrastructure, the near-term sentiment remained pressured by macro uncertainty and the prospect of slower growth from trade disruptions.