Bitcoin Drops 2% as Ukraine Iran Strikes Send Oil Toward One Month High

Bitcoin gave back early week gains into Monday’s Wall Street open, falling up to 2% from a high of $84,200, its best level since Wednesday.

The retreat came as Ukrainian President Volodymyr Zelenskyy accused Russia of continuing to strike energy infrastructure despite Donald Trump’s announced moratorium. Iran also reported an oil tanker hit and ablaze in the Strait of Hormuz.

Oil Spikes as Hormuz Tensions Rise

Oil prices reacted sharply, with WTI crude spiking past $94 per barrel and Brent reaching $109, its highest since September 16. Markets were already on edge ahead of US CPI data due Wednesday and PPI due Thursday, with CPI proving especially sensitive to rising oil prices.

Robin Brooks, former chief FX strategist at Goldman Sachs, argued oil markets have priced in too much risk premium, noting Persian Gulf volumes near 13 million barrels per day, well above the lows seen in March and April, yet prices are back at their highs.