Bitcoin briefly dropped below $66,000 as oil prices surged to their highest level since 2022 and geopolitical tensions intensified across the Middle East.
West Texas Intermediate crude climbed as high as $111.24 per barrel during Asian trading, while Brent crude traded near $110 after a week of sharp gains driven by escalating conflict.
Iran’s Assembly of Experts named Mojtaba Khamenei as the country’s new supreme leader following the death of Ayatollah Ali Khamenei, with the Islamic Revolutionary Guard Corps pledging full obedience.
The leadership change appeared to harden Iran’s stance in the conflict, with officials warning the country could sustain months of high-intensity military operations.
Oil markets were further pressured as the Strait of Hormuz remained effectively closed and Gulf producers including the United Arab Emirates and Kuwait reduced production.
Bitcoin’s pullback comes as rising oil prices weaken expectations for Federal Reserve interest rate cuts, strengthening the dollar and reducing appetite for risk assets.
President Donald Trump said the oil spike could prove temporary, predicting prices would fall sharply once the conflict and Iran’s nuclear threat were resolved.
At the time of reporting, Bitcoin price was $66,385.38.