Bitcoin has dropped below $65,000 after U.S. President Donald Trump threatened a “massive attack” on Iran, with rising tension in the Gulf and a sharp jump in oil prices triggering another bout of risk aversion in financial markets.
The world’s largest cryptocurrency fell around 1.5% on Thursday, trading at $64,885 on 23 July according to data from crypto.news, extending losses after a brief recovery attempt earlier in the week. The price later dipped to about $64,831 as traders reacted to a further escalation in the Iran conflict and a steep move higher in crude benchmarks.
The latest slide continues a pattern seen this month, with Bitcoin weakening whenever the conflict has intensified. Earlier in July, BTC lost more than 3% to around $61,691 after Trump declared that a tentative Iran ceasefire was over.
Trump signals possible large-scale operation
Speaking to Axios on Thursday, Trump said he was weighing renewed major military action against Iran following strikes on U.S. targets and attacks on Saudi shipping by Iran‐backed forces.
“I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it.”
His comments followed Iranian strikes on U.S. positions in the region and attacks by Iran‐aligned Houthi fighters on Saudi oil tankers in the Red Sea. Trump did not set a timetable for a decision, and two U.S. officials told Axios that the White House had not taken a final decision or issued fresh military orders.
Asked about potential involvement from Israel, Trump told Axios that the country “would join in two minutes if I ask them to.” He said the U.S. did not need Israeli help to carry out an operation, but acknowledged that any Israeli role could have “consequences” if Iran chose to retaliate.
Trump also claimed that Iranian officials were seeking talks but were unwilling to accept the terms on offer. Two regional sources familiar with mediation efforts told Axios that Iran’s leadership had rejected the latest proposal passed through intermediaries.
“They haven’t received enough pain yet,” Trump said, questioning Tehran’s approach to negotiations.
No clear route to ceasefire
Military activity has intensified over the past 12 days as Washington has sought to curb Iranian attacks on commercial shipping in the Strait of Hormuz, a vital energy chokepoint. Axios reported that Iran has continued its regional operations despite repeated U.S. strikes, with no obvious pathway to a ceasefire emerging.
The prospect of a broader confrontation has reinforced a “risk‐off” mood among investors, pushing some out of volatile assets such as cryptocurrencies and into traditional havens.
Binance Research analysts told Barron’s that wider macroeconomic pressures could cap Bitcoin’s performance through the third quarter. They noted that BTC ended the first half of 2026 near $59,500, roughly 53% below its record peak above $120,000 set in October 2025.
According to Binance Research, that decline leaves Bitcoin in a zone that has historically coincided with bottoming phases heading into the fourth quarter, though the firm stressed the signal is not confirmed. The failure to hold $65,000 on Thursday has kept focus on whether sellers can force another test of this month’s lows.
Houthis target Saudi tankers as routes disrupted
Energy markets came under fresh strain after Yemen’s Iran‐aligned Houthi movement said it had attacked two Saudi oil tankers, Encelia and Layla, in the Red Sea. The group claimed to have used ballistic missiles, cruise missiles and drones, accusing the vessels of breaching its declared naval blockade on Saudi Arabia.
Saudi state news agency SPA confirmed that an attack had caused a fire on Encelia’s bow, but said all crew members were safe.
Ship‐tracking data reviewed after the incident indicated that five tankers altered course following Houthi warnings to avoid Saudi ports. Two of those vessels subsequently signalled the Suez Canal as their new destination, while the Houthis separately claimed they had forced about 10 ships to turn back.
The incidents have pushed the Bab el‐Mandeb Strait, which links the Red Sea to the Gulf of Aden, further into the spotlight. Reuters reported that the route offers Saudi Arabia an alternative export path while traffic through the Strait of Hormuz remains severely disrupted.
Oil jumps as analysts warn of further shocks
Brent crude futures surged 7% to $100.66 a barrel on Thursday, rising above $100 for the first time since late May, according to Reuters. West Texas Intermediate gained 6.3% to $92.28, while Brent’s monthly advance approached 40%.
UBS analyst Giovanni Staunovo estimated that Gulf oil‐loading activity had fallen to about 2.5 million barrels per day over the previous week, compared with a 30‐day average of 6 million barrels per day. He also estimated that Iranian oil loadings may have dropped from between 1.5 million and 2 million barrels per day at the start of July to effectively zero.
Goldman Sachs warned that Brent could climb beyond $120 in the fourth quarter if disruption in the Strait of Hormuz continues and extends to the Bab el‐Mandeb Strait and Suez Canal. Any sustained spike in energy prices could complicate the U.S. inflation outlook.
Binance Research expects that same macro backdrop, including higher fuel costs and geopolitical uncertainty, to restrain any Bitcoin recovery through the third quarter, even as traders watch closely to see whether the latest sell‐off marks the formation of a longer‐term floor.
