Crude Oil Breaks $100 as Crypto and Gold Fall

Brent crude oil rose 2.75 percent to 107.48 dollars on Monday. West Texas Intermediate climbed 2.51 percent to 102.56 dollars. Bitcoin and gold moved in the opposite direction during the same session. Global markets diverged ahead of the Federal Reserve rate decision scheduled for Wednesday.

The price gap between energy and digital assets widened significantly. Crude oil cleared the 100 dollar mark for the first time since July. This occurred while the total cryptocurrency market capitalization dropped 4.32 percent to 2.62 trillion dollars. Gold eased 0.22 percent to 4,340.58 dollars in the same period.

Supply Constraints Drive Energy Prices

Saudi Arabia shut its East-West pipeline after drone attacks from Iraq. The outage threatens up to 4 percent of global oil supply. Reuters reported that fresh Houthi strikes on Saudi soil deepened the squeeze. The attacks also targeted a vessel in the Strait of Hormuz.

Yemen’s Houthis reached Perim island on Friday. They tightened their grip on the Bab el-Mandeb corridor. This route carries 4 percent to 5 percent of the global supply. Tony Sycamore, an analyst at IG, noted that risks point toward the 119.48 dollar high seen in early March.

Fed Hike Odds Pressure Crypto

Hotter-than-expected US inflation data strengthened the case for tightening. Traders now price in an 86.3 percent chance the Fed lifts its target to 375-400 basis points. This probability stood at 59.4 percent a week ago. It was 33.9 percent a month ago.

Bitcoin traded near 76,718 dollars after a 4.4 percent weekly slide. Ethereum slipped 1.79 percent to 2,478.43 dollars. Silver lost 0.25 percent to 64.11 dollars. Copper dropped 1.08 percent to 6.40 dollars as metals failed to act as a shelter.

Diplomatic Tensions Delay Oman Talks

Gulf states and Iran planned to meet in Oman on Monday. Omani Foreign Minister Badr Albusaidi announced the meeting was postponed. The delay removes a potential source of immediate supply relief. Markets will now focus solely on the Federal Reserve outcome.

Crude oil now trades on supply headlines while crypto trades on monetary policy. The Wednesday decision will determine if these forces remain separate. The report cites GN markets/crypto (en-US) for the underlying data. The divergence highlights distinct drivers for different asset classes.