Bitcoin Falls 2% as Oil Surges to ₱6,678 ($113) on Iran Tensions
Bitcoin fell nearly 2% in 15 minutes on Sunday as oil prices surged almost 20% to $113.7 per barrel, reaching their highest level since April 2022. The spike followed Iran's threats against tankers in the Strait of Hormuz.
Key Takeaway
Bitcoin's drop proves geopolitical oil shocks still trigger risk-off moves despite Wednesday's rally to $73,770.
Oil prices jumped from ₱5,614 ($95) to $113.7 per barrel shortly after US futures markets opened on Sunday. Bitcoin fell from ₱3,957,023 ($66,960) to ₱3,884,040 ($65,725) by 10:30 pm UTC during the same window.
The oil spike marked a continuation of last week's surge, when prices rose more than 30% after the US and Israel struck Iran. Iraq warned that roughly 3 million barrels per day of production could be disrupted due to Iranian threats against tankers in the Strait of Hormuz. Standard Chartered analysts said Iran's retaliation has been broader than its previous symbolic measures and has created several regional flashpoints posing real risk to supply.
US President Donald Trump tried to calm markets on Saturday, saying oil prices will come down very fast. He added that the US has a tremendous amount of oil and doesn't need to tap the Strategic Petroleum Reserve.
Bitcoin bounced back to $66,272 by the time of publication, while oil prices cooled off to $105 per barrel according to Hyperliquid data. The recovery came after Bitcoin had climbed from below $64,000 to $73,770 by Wednesday during the Middle Eastern conflict.
ING analysts warned that while there are concerns about oil flows through the Strait of Hormuz, a greater risk would be Iran targeting additional energy infrastructure. They said this could lead to more prolonged outages. Iraq has already cut production by nearly 1.5 million barrels per day, with the Rumaila field reduced by 700,000 barrels per day and West Qurna 2 field by 450,000 barrels per day.
This article was written based on reporting from Cointelegraph.
