Hormuz Strait Officially Charges Fees, Powell Sends Dovish Signal to Dampen Risk Appetite, US Stocks Open High and Fall, Crude Oil Surges 4% Intraday

BlockBeats News, March 31, Federal Reserve Chairman Powell released a dovish signal on Monday, stating that the policy is currently in a favorable position and that we can wait to see how the current situation develops. Despite the ongoing energy shock, long-term inflation expectations appear to remain stable, and the Fed does not yet need to decide on how to respond to the latest developments. The Fed currently does not know how significant the energy shock will be, so it is too early to draw conclusions. Boosted by this news, market pricing shows that bets on Fed rate hikes have been withdrawn, with a shift towards pricing in the possibility of a rate cut later this year. However, Powell's remarks did not prevent a weakening of the US stock market as tensions in the Middle East escalated, with Trump issuing a new threat to Iran. The three major indices opened higher but closed lower. According to Bitget data, the Dow rose 0.11% at the close, the S&P 500 fell 0.39%, and the Nasdaq fell 0.73%.

Trump has once again threatened Iran regarding a ceasefire, stating, "America is engaged in serious negotiations with a brand new and more rational regime to end US military actions in Iran. Significant progress has been made so far, but if for any reason an agreement is not reached quickly (which is likely to happen), and if the Strait of Hormuz is not immediately 'open for business,' we will destroy and obliterate all of Iran's power plants, oil wells, and Kharg Island (possibly including all desalination plants)."

Iran insists that it has not negotiated with the United States since the outbreak of the war. Additionally, the Iranian parliament has passed a bill to impose tolls on ships passing through the Strait of Hormuz. The toll for an oil tanker could be as high as $2 million, payable in Iranian currency. Kuwait Petroleum Corporation has reported that one of its oil tankers was attacked by Iran in Dubai Port, causing oil prices to rise again.

According to Bitget market data, WTI crude oil surged by 4.00% intraday, now trading at $105.58 per barrel, closing above $100 for the first time since July 2022. Spot gold fell to $4500 per ounce, erasing its intraday gains, with a peak at $4580 per ounce. The stock markets in Japan and South Korea opened lower today, with the South Korean KOSPI index falling by 130.16 points, a 2.47% decrease, to 5147.14 points. The Nikkei 225 index opened down 447.09 points, a 0.86% decline, at 51438.76 points.

As for cryptocurrencies, according to HTX market data, Bitcoin briefly surpassed $68,000, now falling back to $66,652, with a 24-hour gain of 1.23%. Ethereum is currently at $2021, with a 24-hour gain of 1.97%.