Bitcoin weakened as escalating tensions between the United States and Iran sent oil prices higher, adding another source of pressure to already cautious financial markets.

BTC slipped almost 1% to around $79,700 after spending the weekend fluctuating around the $80,000 threshold. The decline came as crude prices extended their September rally following fresh U.S. military action involving Iranian oil shipments.

U.S. Central Command said American forces struck three Iranian tankers on Saturday: M/T Downy near Kharg Island, M/T Stark 1 near Jask and M/T Kylo in the Gulf of Oman.

Admiral Brad Cooper said the strikes were a response to attacks involving U.S. ships and were designed to impose additional economic costs on Iran.

Centcom said its forces have redirected 92 commercial vessels since maritime operations resumed on July 14. Three ships have been disabled and two others boarded during the operation.

The latest escalation pushed both U.S. and European crude benchmarks about 1% higher. West Texas Intermediate was trading at approximately $92.72 per barrel and had already gained more than 6% during September’s first seven days.

The jump in energy prices could have broader consequences for financial markets. Sustained increases in crude prices can add to inflationary pressure and make central banks less willing to reduce interest rates. That could create a less favorable environment for assets such as Bitcoin, which tend to benefit from easier financial conditions.

Bitcoin was last quoted near $79,700, representing a decline of almost 1% from midnight UTC, according to CoinDesk.

Crypto markets were also dealing with a separate security incident after the Liquid Network, a settlement network used by crypto exchanges, was exploited for roughly $320 million late Sunday.

Strong Jobs Data Complicates Fed Outlook

Interest-rate expectations have also shifted following Friday’s stronger-than-forecast U.S. employment report.

The data strengthened bets that the Federal Reserve could maintain a tighter policy stance, with some traders even increasing the probability of a rate hike. Higher rates can weigh on Bitcoin by making riskier assets less attractive.

Trump, however, continued to call for lower borrowing costs.

In posts on Truth Social, the president urged the Federal Reserve to reduce rates, arguing that a stronger U.S. economy should be accompanied by cheaper credit. He also called for the country to maintain the lowest interest rate globally and warned that he could restrict trade with countries running deficits against the U.S.

The competing pressures leave Fed Chair Warsh facing a difficult policy environment. The administration is pushing for easier monetary conditions while economic data provides arguments for maintaining or potentially tightening policy.

For Bitcoin traders, the uncertainty over the Fed’s next move may be enough to curb risk-taking even without an immediate rate increase.

The combination of rising crude prices, heightened geopolitical tensions and shifting Fed expectations is therefore creating a more challenging backdrop for Bitcoin and the broader cryptocurrency market.