Iran-US Conflict Sends Bitcoin Price Lower Amid Rising Oil Prices

The recent escalation of hostilities between the US and Iran has sent shockwaves through global markets, causing Bitcoin to fall by over 1% since midnight UTC.

The renewed airstrikes have raised concerns about shipping through the Strait of Hormuz, a vital oil passageway, driving up Brent crude futures by more than 3% to approach $79 a barrel.

This increase in energy prices adds inflationary pressure and reduces the scope for easier monetary policy, weighing on Bitcoin's price during earlier oil shocks.

Taran Dhillon, head of digital assets at Kula, noted that crypto markets will experience a 'tug-of-war' between macro and geopolitics this week, with US inflation data coming out soon shaping interest-rate expectations.