Bitcoin hovered near $66,150, experiencing a nearly 2% drop over 24 hours as global markets absorbed shockwaves from rising oil prices and regional instability.
Futures for major U.S. stock indices saw significant declines, with Dow futures down over 800 points and S&P 500 and Nasdaq-100 futures each falling approximately 1.5% ahead of the trading session.
Oil prices surged past $100 a barrel, with West Texas Intermediate crude jumping 18% to over $107 and Brent crude climbing 16% to around $108. This marks the first time global benchmarks have exceeded $100 since 2022, fueled by fears of supply disruptions through the Strait of Hormuz and attacks on energy infrastructure across the region.
Geopolitical developments, including Israeli strikes on fuel depots and refinery facilities in Tehran, alongside Iranian drone attacks, have heightened market volatility. The potential for sustained high oil prices raises inflation concerns and could delay interest-rate cuts, impacting speculative assets like Bitcoin.
While Bitcoin briefly dipped below $66,000, it has shown relative stability compared to traditional markets, suggesting traders may be factoring in the geopolitical shock. The broader market uncertainty follows the naming of Mojtaba Khamenei as Iran's new supreme leader.