Oil prices surged on Wednesday and bitcoin retreated to $79,000 following reports of U.S. strikes on Iranian tankers and retaliatory actions by Iranian forces. Market data showed Brent crude breaching $100 per barrel for the first time since July 2, while West Texas Intermediate (WTI) surpassed $95 per barrel. Since August 30, Brent crude has increased by over 10%.
According to U.S. Central Command, American forces destroyed five Iranian crude oil carriers on September 8 after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles. The U.S. military also destroyed three additional Iranian crude oil carriers three days prior following similar attempts to target its warships. Reports from the Middle East also indicated that three oil tankers were hit by suspected Iranian drones near Dubai, Kuwait, and Qatar.
The surge in energy prices sent European stock indices lower, with the DAX index declining by more than 400 points, or 1.62%. Additionally, the yield on the 2-year U.S. Treasury note rose 2 basis points to 4.423%.
Before the latest escalation, bitcoin had recovered from a Tuesday low of $77,603 toward the $80,000 threshold. After touching a session high of $79,742, the cryptocurrency slipped below $78,800 before rebounding to trade above $79,300.
Market analysts note that surging energy prices complicate inflation control and add economic headwinds. With diplomatic channels frozen and Tehran warning of harsher retaliation, the ongoing conflict presents risks of further supply shocks and regional destabilization, which geopolitical volatility analysts warn could stifle risk-on appetite and cap bitcoin's near-term upside potential.
