Bitcoin dips below $80K as US strikes Iran, oil markets roil

Bitcoin fell below $80,000 as US forces struck an Iranian ground control station in Bandar Abbas, escalating a conflict that has disrupted global energy markets and driven risk-off sentiment across asset classes.

"These actions were measured, purely defensive, and intended to maintain the ceasefire," a US official told The Hill on Wednesday.

US Central Command said it shot down four Iranian one-way attack drones and struck a ground control station in Bandar Abbas that was about to launch a fifth drone. The escalation comes as 109 commercial vessels have been redirected under Operation Epic Fury, according to CENTCOM. Oil benchmarks swung sharply — Brent crude fell 3.7 percent to $95.92 a barrel, while WTI dropped 5.59 percent to $88.70 — after Iranian state TV published what it said was a draft memorandum of understanding with the US. The White House called the document a "complete fabrication."

The Strait of Hormuz blockade has squeezed Iran's economy to a breaking point. Former Energy Secretary Dan Brouillette warned the country has only 20 million to 22 million barrels of onshore storage remaining, down from a typical 120 million barrels, and could face an irreversible production shutdown within weeks. "This blockade is working very, very well," Brouillette said. "Their exports are down. Their production numbers are down. Their storage is filling up."

President Donald Trump said during a Cabinet meeting Wednesday that Iran is "negotiating on fumes" and accused the regime of trying to "outwait" him until the midterm elections. "We can make a good deal right now, but maybe not a great deal," Trump said, adding that military action remains an option. War Secretary Pete Hegseth said the US is prepared to "finish the job" if negotiations fail.

The macro uncertainty weighed on Bitcoin as traders priced in prolonged disruption to energy markets and broader geopolitical risk. The cryptocurrency's decline tracked a broader risk-off move that also hit equity futures, though US stock indices closed at record highs Tuesday on AI-driven momentum. Secretary of State Marco Rubio said there has been "some progress" in talks with Tehran but cautioned that the next "hours and days" will determine whether diplomacy can succeed.

Iran's Islamic Revolutionary Guard Corps warned its forces are "lying in wait with full magazines," according to the Tasnim news agency, while the country's supreme leader, Mojtaba Khamenei, would need to approve any final deal through secret courier networks while remaining in hiding as a designated target, counterterrorism experts said.

This article is for informational purposes only and does not constitute investment advice.