Geopolitical tensions in the Middle East are heating up again—and the oil market could be the next battleground.

With Iran's political situation deteriorating, crude prices are already feeling the pressure. But here's what traders need to keep their eyes on: energy instability doesn't just ripple through oil futures. It cascades into inflation expectations, currency volatility, and ultimately reshapes investment portfolios across the board.

Why does this matter for crypto? Simple. When traditional markets face macro headwinds like oil shocks, institutional capital gets defensive. We've seen it before—geopolitical spikes trigger flight-to-safety moves that impact asset correlations, including crypto markets. Energy costs climb, inflation concerns resurface, and central banks face tougher policy calls.

The real question isn't just about gas prices at the pump. It's about how supply chain disruptions, energy-dependent sectors, and macroeconomic uncertainty will shift market risk appetite over the coming weeks. Keep tabs on crude's trajectory and watch how it influences broader risk sentiment across all asset classes.