Brent crude jumped roughly 7% to above $100 per barrel Thursday, its highest print in nearly two months, and the shockwave hit crypto almost immediately. Bitcoin slid to around $64,700, down about 2% in 24 hours after being rejected near the $67,000 resistance level it had been testing earlier this week. Ethereum fell close to 3%, dipping to roughly $1,888 and losing the $1,900 mark. XRP, Solana, Dogecoin and Cardano all posted steeper daily losses.

The catalyst was a series of attacks by Iran-aligned Houthi forces on two Saudi oil tankers in the Red Sea, followed by explicit threats to disrupt shipments through the Bab el-Mandeb Strait. West Texas Intermediate crossed $90 on the same session. Shipping through the Strait of Hormuz was already under pressure before these strikes, so traders are now pricing in a scenario where two of the world's most critical energy corridors face simultaneous disruption. Goldman Sachs analysts flagged that Brent could push past $120 if supply interruptions persist.

US President Donald Trump promised significant military action against Iran and its regional allies, which added another layer of uncertainty. Markets moved fast. Traders reportedly pushed the probability of a Federal Reserve rate hike at its next meeting to nearly 40%, up from single digits just days earlier. That repricing matters for Bitcoin. Higher rates make government bonds more attractive relative to non-yielding assets, and speculative positions tend to be the first to go when the rate calculus shifts.

The week had looked more constructive for crypto before Thursday. Bitcoin had clawed back ground and was approaching a meaningful resistance zone. Oil changed the narrative. Inflation concerns, which had been fading from the conversation, came back sharply, and the market's earlier optimism about Fed cuts evaporated. This dynamic is worth watching alongside broader regulatory developments, including the debate over crypto legislation that major financial institutions are actively lobbying around.

Whether this is a one-session reaction or the start of a deeper correction depends largely on how the geopolitical situation develops over the next few days.

This article is for informational purposes only and does not constitute financial advice or an investment recommendation.