Crude oil broke above $61 a barrel this week after the latest geopolitical tensions between the U.S. and Iran rattled markets. The warnings from Washington sparked concerns about potential supply disruptions in the Middle East, pushing traders to bid up prices despite the persistent global oversupply situation.

What's interesting here is how quickly risk premiums kick in when supply becomes uncertain. Even with excess crude flooding the market, one threat to regional stability sends prices northward. This kind of volatility across commodities often spills over into crypto markets too—when traditional assets get jumpy, capital flows become unpredictable. The energy sector hiccup reminds traders why diversification beyond just crypto holdings makes sense when geopolitical risk is elevated.