Oil Prices Hold Near $107

Oil prices remained near $107 a barrel Wednesday as escalating Middle East tensions continued to ripple through global markets. Brent crude climbed on the news that the ceasefire with Iran was on "massive life support," according to President Donald Trump, sending the U.S. Dollar Index 0.4 percent higher and weighing on risk assets.

Bitcoin fell around 1 percent to $80,800 while ether dropped 2 percent to $2,290. Most altcoins declined further, though CRO, CRV and TON posted gains of 5 percent to 10 percent. U.S. equity futures also dropped amid the flight to safety. CoinDesk’s DeFi and Computing sector indexes led losses in crypto, with JUP, MON and SEI each falling more than 5 percent amid thin liquidity.

Market-wide notional open interest in crypto futures rose to $125 billion even as trading volumes slipped 6 percent to $174 million.

European Union gas industry lobby groups asked Brussels to relax mandatory storage refill targets as the Middle East war curtails global LNG supply. The EU requires member states to fill gas storage to 90 percent of capacity by November each year to prepare for winter demand.

Current storage stands at 35.57 percent, well below five-year averages. The International Association of Oil & Gas Producers and Eurogas called for greater flexibility in the rules, including earlier activation of existing deviation allowances of up to 15 percentage points when market conditions are challenging.

They argued that demand aggregation and diversification measures should remain voluntary to avoid distorting price signals needed to attract LNG cargoes. "To maximize price relief, flexibilities should be activated by the commission and member states as soon as possible, early in the storage season," the organizations said in a statement.

The plea comes ahead of an informal meeting of EU energy ministers in Cyprus to assess the bloc’s energy supply situation. The VIX equity volatility gauge jumped more than 10 percent this week to nearly 19, though it remains below recent peaks above 30.

Options activity on Deribit showed interest in both upside calls above $80,000 and downside puts near $65,000 and $74,000. Derivatives data indicated unwinding of bullish bets in several tokens. ZEC open interest fell over 10 percent alongside its price, while SUI, CORE and HBAR also saw notable declines in positioning.

In contrast, Canton’s CC token recorded a more than 10 percent jump in open interest with positive funding rates. CoinMarketCap’s “Altcoin Season” indicator reached 50 out of 100, its highest reading since late March, suggesting some improvement in broader sentiment despite the day’s losses.

XRP also led trading volumes on major South Korean exchanges, trading near $1.44 to $1.45.

The conflict has removed a significant share of LNG supply from global markets, driving competition for remaining cargoes especially from Asian buyers. European chemical producers received a brief reprieve from higher energy costs while several nations turned to coal to offset gas shortages.

Oil tanker movements through the Strait of Hormuz remained constrained, with some vessels going dark for safety. The EU lobby groups stressed that any emergency energy measures must stay temporary, targeted and proportionate. They warned that distorting wholesale price signals could deter future crude and natural gas supplies at a time when global markets are tightening.