Middle East tensions and oil prices continue to rattle investors. Despite the International Energy Agency (IEA) agreeing to release 400 million barrels of oil from emergency reserves, WTI crude prices still broke through $91 per barrel. Major U.S. stock indices were mixed, while Treasury bonds fell and the dollar rose. The cryptocurrency market gained 0.94% in the past 24 hours, with overall sentiment recovering slightly. Additionally, the two most important U.S. financial regulators, the SEC and the CFTC, have agreed to cooperate in a way that fosters innovation, including regarding cryptocurrency regulation and new digital asset products.

Oil Prices Continue to Drive Market Sentiment

The situation in the Middle East and oil prices remain the primary focus for nervous investors. Even with the IEA's agreement to release 400 million barrels from emergency reserves—the largest release in history—U.S. crude (WTI) still surpassed $91 per barrel. Japan also announced it would release 80 million barrels from its strategic reserves, but this failed to effectively curb the price surge.

President Trump is preparing to invoke powers to allow the resumption of oil production off the coast of Southern California. He also reiterated that the war is coming to an end.

On Tuesday, the U.S. Navy sank several Iranian vessels near the Strait of Hormuz, including 16 minelayers. This followed attempts by Tehran to lay mines in the critical shipping lane, which is central to oil supply security concerns. The United Kingdom Maritime Trade Operations (UKMTO) also reported on Wednesday that three cargo ships near the Iranian coast were attacked by shelling, with one of the vessels located inside the strait at the time.

On the economic data front, the U.S. Consumer Price Index (CPI) for February rose 0.3% month-on-month and 2.4% year-on-year, matching market expectations. The data indicates that overall inflation remains moderate, though it has not yet reflected the impact of the recent rapid rise in oil prices.

Bitcoin Holds $70,000 as SEC and CFTC Sign MOU

The cryptocurrency market has risen 0.94% over the past 24 hours, bringing the total market capitalization to $2.4 trillion. Bitcoin is holding steady around $70,000, while Ethereum has reclaimed the $2,000 level. Overall market sentiment has recovered slightly; the Fear and Greed Index has risen to 27, and the average cryptocurrency Relative Strength Index (RSI) has increased to 53.45.

The two most significant financial regulators in the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have agreed to collaborate to foster innovation. This cooperation extends to cryptocurrency regulation and new digital asset products.

The agreement reflects a joint commitment to promoting innovation while respecting market participants. Both agencies stated that, as part of their planned initiatives, they will work toward developing federal policies that provide an appropriate regulatory framework for crypto assets and other emerging technologies.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.