Brent crude climbed above $107 a barrel on Monday, extending a rally driven by renewed geopolitical risks around two major energy flashpoints. Oil was trading up about 2.4% on the day after t
Brent crude climbed above $107 a barrel on Monday, extending a rally driven by renewed geopolitical risks around two major energy flashpoints.
Oil was trading up about 2.4% on the day after touching an intraday high around $107.25. The move followed fresh Russian strikes on Ukrainian energy infrastructure.
David Gokhshtein shares how Fed rate hike impacts Bitcoin (9:08)Ukrainian President Volodymyr Zelenskyy said Russia continued attacking energy facilities despite U.S. President Donald Trump announcing an energy ceasefire between Moscow and Kyiv.
Russia has not publicly confirmed that it agreed to such a truce.
Pressure also came from the Middle East, where attacks on commercial tankers around Oman and the Strait of Hormuz added to fears over oil shipments. One tanker was hit by a drone near Oman, while two others were struck while transiting the Strait of Hormuz, according to maritime security reports.
Brent was already near two-week highs as unrest around key Gulf shipping routes increased the risk of supply disruptions.
The renewed rise in energy prices is also adding pressure on Bitcoin and gold, as investors weigh the risk of another inflation shock.
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Technical analyst The Great Martis said on Oct. 8 that Brent’s chart continued to show a bullish inverted head-and-shoulders pattern.
Chart uploaded by The Great Martis on X“The inverted head and shoulders pattern continues to look bullish, making a move to $110 look imminent.”
A head-and-shoulders pattern is a chart formation with three peaks, where the middle peak is highest, and is often viewed as a bearish reversal signal.
According to his analysis, a sustained break above $110 could open the way toward $150. The analyst also warned that higher oil prices could push inflation sharply higher and widen already-stretched refining margins.
That call was made when Brent was trading near $102.
By Oct. 12, with oil above $107, the analyst reposted the prediction and wrote: “Like taking candy from baby.”
The inflation risk matters because energy feeds directly into transport, production and consumer costs. Markets are also awaiting Wednesday’s U.S. CPI report, with economists expecting headline inflation to rise to 3.7% from 3.4%.
A sustained oil rally can be difficult for Bitcoin and gold because higher energy prices can reinforce inflation fears and keep interest rates elevated for longer.
That can strengthen the dollar and increase bond yields, reducing demand for non-yielding assets such as gold while also weighing on risk-sensitive assets such as Bitcoin. That dynamic was visible Monday.
Bitcoin fell to around $82,528, down 1.4%, as oil moved higher.
Bitcoin had entered last week with strong momentum, climbing above $86,000 and briefly approaching $87,000 on Oct. 5.
But that strength faded as rising oil prices, Treasury yields and inflation concerns weighed on risk appetite, leading Bitcoin back in the red.
Gold also declined, with spot prices near $4,165.32, down 0.71%, while silver fell about 0.86% to $60.42.
