Oil Rises, Bitcoin Slides After U.S. Strikes Iranian Crude Carriers

Bitcoin slipped nearly 1% as rising tensions between the U.S. and Iran pushed crude oil prices higher, adding fresh pressure to risk-sensitive markets.

Bitcoin was trading in negative territory after a weekend escalation in the U.S.-Iran conflict sent oil prices higher.

On Saturday, U.S. Central Command (Centcom) confirmed that American forces had attacked three Iranian oil tankers: M/T Downy near Kharg Island, M/T Stark 1 near Jask and M/T Kylo in the Gulf of Oman.

“If you shoot at two of our ships, we will impose an even higher economic cost — taking out three of yours,” Admiral Brad Cooper said after the strikes.

Centcom also released updated figures on the U.S. naval blockade of Iran. Since operations resumed on July 14, American forces have redirected 92 merchant vessels, disabled three ships and boarded two others, highlighting the growing intensity of maritime operations in the region.

Crude prices climbed roughly 1% on both sides of the Atlantic. West Texas Intermediate (WTI) was trading at $92.72 per barrel.

Oil has gained more than 6% during the first seven days of September, extending its rebound from an early July low of roughly $70. A sustained rise in energy prices could add to inflationary pressure around the world and make it more difficult for central banks, including the Federal Reserve, to lower interest rates.

Higher oil prices are therefore generally viewed as a negative factor for financial markets that depend heavily on abundant fiat liquidity.

Bitcoin, the world’s largest cryptocurrency by market capitalization, was trading near $79,700 at the time of writing, down almost 1% from midnight UTC, according to CoinDesk.

The cryptocurrency spent much of the weekend fluctuating around the $80,000 level. Late Sunday, the Liquid Network, a settlement network used by cryptocurrency exchanges, was hit by an exploit involving approximately $320 million.

Fed Rate Uncertainty Adds Pressure

Expectations for a Federal Reserve rate hike increased Friday after the U.S. released an August jobs report that came in stronger than economists had anticipated.

President Donald Trump responded by renewing his calls for lower borrowing costs.

“The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change,” Trump wrote in a Friday Truth Social post. “A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT… Very simple!”

Trump also urged policymakers to cut rates further, saying the U.S. should have the lowest borrowing costs of any country and warning that he could stop trading with nations where the U.S. runs a deficit.

The renewed pressure from Trump puts Fed Chair Warsh in a difficult position, with the central bank facing competing signals from the White House and a labor market that has shown greater strength than expected.

For Bitcoin and other risk assets, the uncertainty surrounding the Fed’s next move may prove more damaging to market sentiment than the possibility of a rate hike itself.

With oil prices rising and monetary-policy expectations becoming less predictable, investors could become more cautious toward Bitcoin and other liquidity-sensitive assets.

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