Bitcoin Pares Gains as Iran Retaliates to US Strikes on Larak Island, Oil Prices Rise

Bitcoin pared recent gains and slipped toward $77K lows as Iran retaliated against US strikes on Larak Island. Meanwhile, oil prices jumped more than 2% today amid a fresh escalation in the US-Iran war.

Oil Prices Climb as Iran launches Strikes on US Forces in Middle East

US forces struck IRGC’s two missile launchers on Larak Island in the Strait of Hormuz, marking the first attack on Iran since late July. President Donald Trump said last week that all mines were removed and any ship or boat placing new mines will be “immediately and systematically destroyed.”

According to U.S. Central Command (CENTCOM), Iran’s claim of U.S. strikes as an “act of aggression” is false. “US forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,” CENTCOM added.

In retaliation, Iran launched multiple ballistic missiles on multiple US bases across the Middle East. No significant impacts have been reported so far, and nearly all incoming missiles have been intercepted, according to Fox News.

Brent crude futures jumped more than 2% to trade above $90 per barrel on Monday. WTI crude oil prices also surged more than 2% to above $85.50.

As CoinGape reported last week, Goldman Sachs noted that oil flows through the Strait of Hormuz recovered to around two-thirds. Bitcoin recovered above $79K on the news, but recent developments have sparked jitters among traders.