Bitcoin’s brief rebound fizzled after renewed geopolitical tensions pushed oil prices sharply higher, rattling global risk markets.

The largest cryptocurrency, Bitcoin, fell to around $69,393 on Thursday morning, down 0.8% over the past 24 hours and 4.3% over the week. The decline followed attacks on two oil tankers in Iraqi waters that sent Brent crude soaring back above $100 per barrel.

Wednesday’s optimism, fueled by the International Energy Agency proposing a record release from strategic reserves, quickly evaporated as crude prices spiked again. The move pushed risk sentiment lower across Asian markets.

Bitcoin’s chart tells the story: after climbing to roughly $71,230 late Wednesday, tanker attack headlines triggered a nearly $2,000 drop in just hours. This marks the third time in two weeks that bitcoin has breached $71,000 only to retreat amid Middle East tensions.

Oil markets reacted strongly. Brent crude surged as much as 10.5% on Thursday, fueled by the tanker attacks, the reopening of Oman’s Mina Al Fahal port, ongoing Persian Gulf hostilities, and doubts that the IEA’s reserve release could fully offset supply disruptions.

Regional equities also fell. The MSCI Asia Pacific Index dropped 1.8%, with energy as the only sector posting gains. Losses deepened through the session, showing little sign of stabilization.

Other cryptocurrencies followed bitcoin lower. Ether slid to $2,025, down 0.5% for the day and 4.5% over the week. Solana fell 1.5% to $85, marking a 5.7% weekly decline, the steepest among major tokens. XRP lost 0.8% to $1.37, while Dogecoin gave back 0.8% to $0.092, erasing most of the Musk-driven gains from Tuesday. BNB remained largely unchanged at $642.

Over the past two weeks, bitcoin’s price pattern has remained consistent: positive headlines push it toward $71,000–$74,000, while negative developments drag it back to $66,000–$68,000. Overall, net movement has been minimal, in line with on-chain data signals.

Demand metrics continue to signal weakness. Data from CryptoQuant shows apparent demand at roughly -30,800 BTC over 30 days. The firm’s bull-bear indicator remains in bearish territory, while supply held at a loss continues climbing, suggesting investors are selling into each rally.

Geopolitical uncertainty remains a key market driver. Donald Trump earlier this week said the conflict could end “very soon” and that military objectives were largely achieved. Yet Iran continues regional strikes, and disruptions persist around the Strait of Hormuz, leaving markets unable to price the conflict’s duration with confidence.

With the Federal Reserve meeting set for March 17–18, oil’s return above $100 reinforces stagflation concerns and reduces expectations for near-term interest rate cuts.