Oil prices were already pushing higher when Bitcoin caught a sudden jolt. Crude climbed to about $112 a barrel on Monday morning after the Middle East war and the Strait of Hormuz shutdown added new pressure to energy markets, while one market watcher warned that if prices stay near that level for weeks, US inflation could edge up again.
Oil Market Pressure Builds
US President Donald Trump added to the tension with a new warning for Iran. In a post on Truth Social, he said Iran would be “living in Hell” if the Strait of Hormuz is not reopened, and he set a fresh deadline, saying the country now has until Tuesday or face attacks on its power plants and bridges.
The message did not stop there. Trump also told Fox News that Iran was negotiating and said there was a “good chance” of a deal within 24 hours. Axios later reported that the US, Iran and regional mediators were discussing a 45-day ceasefire that could end the war.
Market Jump Follows The Headlines
Crypto moved quickly on the mixed signals. Total market value rose about $70 billion, or 2.5%, to $2.38 trillion in early Monday trading, reaching an 11-day high. Bitcoin touched $69,870 on Coinbase, according to TradingView data cited in the report.
The move also hit traders who had bet against the market. CoinGlass data showed roughly $255 million in liquidations over 24 hours, with 73% coming from short positions. That points to a fast squeeze, not a slow build driven by steady buying.
Image: Kpler/Marine Traffic
The wider backdrop is still the war itself. The conflict has lasted more than a month, and the strain on energy supply has helped push oil higher. Based on reports in the piece, Americans have been paying an extra $240 million a day for fuel since the war began on Feb. 28.
A Risky Week Ahead
That oil pressure is the part markets are watching most closely. The Kobeissi Letter, as cited in the report, said inflation tied to the US Consumer Price Index could rise to about 3.7% if current oil levels hold for another seven weeks.
For now, crypto is moving on headlines that can flip in hours. Trump’s latest remarks carried both a threat and a door left open for a deal, leaving traders to sort through a market that is reacting to war, energy prices and shifting US signals all at once.