JUST IN: Saudi Arabia just made a major power move.
Saudi’s East-West oil pipeline — the critical route that bypasses the Strait of Hormuz — is now running at full capacity of 7 million barrels per day.
This is a game-changer.
While tensions in the Strait of Hormuz continue to threaten global oil supply, Saudi Arabia has quietly secured an alternative path. This significantly reduces the risk of a total oil shock even if the Strait remains disrupted.
What this means for Gold and Crypto:
For Gold:
This is bearish in the short term.
The immediate fear of a major oil supply crisis has just been reduced. Lower geopolitical risk premium usually means less demand for safe-haven assets like gold. We could see gold pull back or consolidate as the “war panic” premium fades.
For Crypto & Bitcoin:
This is double-edged, but leaning negative in the near term.
Reduced oil shock risk = lower risk-off pressure → potentially supportive for risk assets.
However, if oil prices stabilize or drop due to this bypass, it also eases inflation fears, which could allow central banks to stay less dovish — indirectly pressuring high-beta assets like Bitcoin.
Bottom line:
Saudi’s move is a strategic masterstroke. It weakens the immediate bullish case for both gold and crypto that was built on “Hormuz disaster” fears.
The market was pricing in chaos.
Saudi just told the market: “Not so fast.”
We may see a short-term relief rally in stocks and crypto, while gold faces selling pressure as fear subsides.
This doesn’t mean the Iran situation is over — but it does mean the worst-case oil supply scenario just became much less likely.
What do you think?
Will this ease the pressure on crypto, or is the damage from recent risk-off already done?
Follow for more updates on how geopolitics is moving gold and Bitcoin.