Bitcoin held above $70K on Wednesday evening as oil markets swung sharply amid the escalating conflict between the United States, Israel, and Iran, which has triggered one of the most severe energy shocks since the 1970s.
Iranian officials warned the world should prepare for oil reaching $200 per barrel if the conflict intensifies, according to a Reuters report.
Iranian forces reportedly struck merchant vessels in Gulf waters on Wednesday and warned ships in the region to follow military instructions as the conflict expanded into key shipping routes. The war, sparked nearly two weeks ago by joint US and Israeli airstrikes, has already disrupted global energy markets and regional transport networks.
US President Donald Trump said during a rally in Kentucky that the United States had effectively won the war but suggested military operations could continue as officials seek to fully neutralize Iran’s ability to project force across the Middle East.
Crude prices spiked to around $120 on Monday before plunging as low as $77 on Tuesday. They rebounded nearly 6% on Wednesday to about $94 by the evening, as traders weighed the risk of further supply disruptions across the region.
Crypto markets, however, showed relative resilience. Bitcoin remained above $70K despite the geopolitical turmoil.
Aurelie Barthere, principal research analyst at Nansen, said the current reaction in crypto suggests that much of the negative macro backdrop may already be priced into digital assets. She noted that past geopolitical shocks often triggered Bitcoin drawdowns of 5% to 10%, but the current move appears more muted and could reflect reduced speculative positioning among traders.
The conflict has spread beyond Iran and Israel, with ports and cities across Gulf states facing drone and missile attacks, increasing pressure from Europe, Turkey, and other governments to push for de-escalation.