Strait of Hormuz shipping crisis impacts industrial metals, BTC reclaims $71,300

Gate News: On March 16, the Middle East situation continued to escalate. The U.S. military conducted military operations against Iranian energy facilities and plans to escort oil tankers through the Strait of Hormuz. Iran stated that the conflict could persist and warned that if energy targets are hit, they will respond proportionally to U.S. facilities in the region. As shipping risks increase, the volume passing through the Strait of Hormuz has significantly decreased, and market concerns about global energy and supply chain stability have rapidly intensified.

The spillover effects of the conflict have extended from the energy market to the industrial metals sector. One of the world’s largest single aluminum smelters has been forced to cut production by about 20% due to raw material supply disruptions, putting pressure on the aluminum supply chain in the Gulf region. The International Energy Agency announced it will release strategic crude oil reserves to Asia to alleviate short-term supply tightness.

On the macroeconomic front, U.S. GDP for Q4 last year was revised down to 0.7%, indicating a clear slowdown in economic momentum. However, the core PCE (Personal Consumption Expenditures Price Index), a key inflation indicator watched by the Federal Reserve, remained at 3.1% year-over-year in January. The employment market also remains resilient, with job vacancies rising to 6.95 million.

In the crypto market, Bitcoin has retaken the critical resistance level of $71,300. Liquidity above is concentrated in the $72,700 to $74,000 range. Support levels to watch below are around $69,000 and $70,200.