Cryptocurrency prices fell on Monday as global markets reacted to the escalating tensions between Iran and the United States. The sharp rise in oil prices also revived fears of inflation, halting the crypto markets. Bitcoin (BTC) slid down to $66,700 (fell by 1.1%), retreating from a brief weekend rally as traders began considering the possibility of a prolonged conflict between the two countries.
Major altcoins also weakened, with Ether (ETH), Solana (SOL), and XRP falling by 2.5%, 4.1%, and 3.6%, respectively. At the time of writing this, BTC is trading at $66,900.
Oil Prices Rise
The prices of oil have risen sharply since the latest conflict between Iran and the United States began. Brent crude oil price surged as much as 13% at first before settling at around $77.50 per barrel, which is still a rise of 6.4%. This is the biggest rise in oil prices since the beginning of the Ukraine/Russia conflict in 2022.
As per Bloomberg, the Strait of Hormuz is effectively closed. Almost a fifth of the world’s oil is imported or exported via the Strait of Hormuz. Asian equities fell by 1.4%, and the U.S equity futures fell by 0.7%. Gold prices have risen to $5,350 per ounce.
Rising oil prices complicate the outlook for the Federal Reserve, as higher energy costs could delay interest-rate cuts and tighten liquidity conditions that drive risk asset prices. Conflicting reports further added to the uncertainty. The Wall Street Journal reported Iran may seek renewed nuclear talks, though Iranian official Ali Larijani denied negotiations. U.S. President Donald Trump said military operations would continue.
