Brent was trading around $112 on Thursday morning, up 2% and at its highest level since May, while Bitcoin hovered near $82,700. Traffic through the Strait of Hormuz fell to four transits on October 18, compared with 85 per day before the crisis, after Iran’s Revolutionary Guards claimed they had hit seven ships without independent evidence. The disruption is fueling inflation, which accelerated to 3.7% year over year in September, and has reversed expectations for the Federal Reserve: every economist surveyed by Reuters now expects a rate hike in December. JPMorgan estimated Bitcoin’s average production cost at $85,000, while CoinShares put the average cash cost of listed miners at $75,500 during the second quarter. Higher energy prices therefore threaten miners’ profitability, particularly as their multi-year contracts come up for renewal.
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