US Strikes Iranian Oil Tankers, Crude Prices Surge Amid Escalating Tensions
The US has struck three Iranian oil tankers in a move that has seen crude prices surge 1% on both sides of the Atlantic. The attack, which targeted vessels near Kharg Island and in the Gulf of Oman, was confirmed by U.S. Central Command (Centcom). Admiral Brad Cooper warned that further action would result in an even higher economic cost for Iran.
The oil market has been a concern for central banks, including the Fed, as elevated prices can add to inflation worldwide, making it harder to cut borrowing costs. Oil prices have gained over 6% in the first seven days of September, rising from around $70 in early July to $92.72 per barrel.
In contrast, Bitcoin has suffered losses, trading near $79,700 as of this writing, down nearly 1% since midnight UTC. This decline comes despite prices moving back and forth around the $80,000 over the weekend.
The situation is complicated by President Donald Trump's renewed push for lower interest rates, which could dampen animal spirits in Bitcoin and the broader market. The odds of a Fed rate hike strengthened after the U.S. reported stronger-than-expected job growth in August.