Bitcoin Plummets Amid Escalating Middle East Tensions and Soaring Oil Prices
Bitcoin prices plummeted over 2% on Thursday as tensions in the Middle East escalated. Oil prices surged above $105 per barrel after Iran signaled it would continue confronting U.S. forces, intensifying fighting between the two sides.
The attacks on Saudi Arabian assets by Tehran-backed Houthis in Yemen added to pressure on crude prices and kept traders focused on possible supply disruptions across the region.
Higher oil prices can raise inflation by increasing transport, production, and household energy costs, making interest rate cuts less likely for central banks trying to control price growth. Federal Reserve Chair Kevin Warsh said U.S. inflation had not fallen enough, leading traders to increase bets that the Fed could raise interest rates at its next policy meeting.