Bitcoin (BTC $70,458.43) dropped sharply from its $74,000 range on Wednesday as rising tensions in Iran combined with stronger-than-expected U.S. inflation data to spook markets.

The decline followed U.S. President Donald Trump’s tough rhetoric on Iran, calling it the “NUMBER ONE STATE SPONSOR OF TERROR,” while Iran’s state TV reported an attack on the South Pars gas field. Tensions escalated further after reports of Israel killing Iran’s Intelligence Minister Esmail Khatib and the U.S. deploying 5,000-pound bunker-buster bombs near the Strait of Hormuz, a critical oil route.

WTI crude surged from $92 to nearly $96 per barrel. Shortly after, February U.S. PPI data showed headline PPI rising 0.7% versus 0.3% expected, with core PPI up 0.5%, highlighting persistent inflation pressures.

Bitcoin slid toward $71,000, down 3.5% in 24 hours, while ether (ETH), solana (SOL), and XRP (XRP) fell about 5%. U.S. equities were modestly lower, and gold dropped 2.5% to $4,885 per ounce.

Investors now turn to the Federal Reserve meeting, with rates expected to hold steady and Chair Jerome Powell’s guidance under close watch amid inflation and geopolitical uncertainty.