Geopolitical risks drive bitcoin to a six-week low and push Brent crude to $96 amid fears of prolonged Middle East instability.
Bitcoin fell to its lowest level in six weeks after U.S. strikes in southern Iran triggered retaliatory threats from Tehran. Iran’s Revolutionary Guards warned of more decisive action, while Kuwait intercepted drones and missiles targeting American bases in the region.
The escalation dashed hopes for a near-term ceasefire, with Polymarket odds of a permanent truce by month-end plunging to 8% from 70% over the weekend. Brent crude surged nearly 4% to around $96 per barrel, raising concerns about inflationary pressures as energy costs climb.
Crypto markets mirrored broader risk-off sentiment, though analysts noted long-term resilience in blockchain and AI narratives. Investors are also eyeing Thursday’s U.S. PCE inflation report for further Fed policy clues.