Bitcoin fell nearly 2% on Sunday as oil prices surged almost 20%, driven by escalating Middle East conflict fears and potential supply disruptions. Oil prices jumped from $95 to $113.7 per barrel shortly after US futures markets opened, fueled by warnings of potential disruptions to roughly 3 million barrels per day of production.
This marks the highest oil price since April 2022. The surge follows recent attacks on Iran, leading to retaliatory actions against Middle Eastern neighbors.
Bitcoin briefly dropped from $66,960 to $65,725 before partially recovering. While oil prices have since cooled to $105 per barrel, the market remains sensitive to geopolitical developments.
Earlier in the week, Bitcoin had climbed during the Middle Eastern conflict, but has since seen a four-day decline. Despite the oil price volatility, former President Trump expressed confidence that prices would quickly stabilize and fall.
Trump stated the US has substantial oil reserves and does not foresee a need to tap the Strategic Petroleum Reserve, anticipating a swift market correction.