Bitcoin erased its early-session advance in Asia as fresh Middle East tensions weighed on broader markets, sending U.S. stock futures lower while oil extended sharp gains.
The digital asset briefly neared $67,000 before sliding back under $66,000. S&P 500 e-mini futures dropped 1.4% to 6,790 after earlier touching 6,857, reflecting a shift toward risk aversion. Meanwhile, crude prices climbed more than 7% globally amid fears of supply disruptions.
Open-source intelligence accounts on X indicated that Iran intensified missile strikes targeting U.S. assets in Bahrain, Kuwait and the UAE. The widely followed War & Gore OSINT account reported that Iran also hit the Ras Tanura refinery run by Saudi Aramco, the world’s largest oil producer.
In parallel, the BBC reported that Israel carried out another round of airstrikes in Lebanon aimed at Hezbollah, Iran’s primary regional proxy.
Stephen Coltman, head of macro at 21Shares, said Tehran appears to be attempting to increase the economic burden on Washington by expanding attacks across the region and threatening critical energy infrastructure. Any disruption to oil and LNG shipments through the Strait of Hormuz could amplify inflationary pressures worldwide.
“Conflicts tend to be inflationary, lifting commodity prices and widening fiscal deficits,” Coltman noted, adding that although markets initially reacted with a sell-off, prolonged instability could eventually benefit assets perceived as stores of value, including bitcoin.
The latest escalation began over the weekend after U.S. and Israeli forces launched strikes described as preemptive efforts to curb Iran’s missile capabilities and nuclear ambitions. So far, however, bitcoin has not exhibited clear safe-haven behavior, continuing to trade largely in line with broader risk assets.
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