Crypto markets rebounded Tuesday morning even as traditional markets slipped, with oil surging on reports that Gulf states may enter the conflict with Iran.
Bitcoin climbed 3.1% to roughly $70,352, bouncing back from weekend lows below $68,000. Ether, solana, dogecoin, and XRP also gained between 2% and 4%.
The rally followed a report from The Wall Street Journal that Saudi Arabia has agreed to grant U.S. forces access to King Fahd Air Base, reversing its earlier opposition to military action against Iran. The United Arab Emirates is reportedly taking similar steps.
If Gulf allies join the conflict, it would significantly escalate the situation, turning what had been a U.S.-Israel operation into a wider regional coalition—far beyond what markets had been pricing in.
Iran reiterated its refusal to engage in talks, echoing Monday’s denial reported by Fars News Agency. The Strait of Hormuz remains mostly closed, with only limited shipping passing through.
Traditional markets reacted immediately: S&P 500 futures dropped 0.5%, European equities were set to open 0.8% lower, Brent crude surged 4% to about $104 per barrel, the dollar strengthened 0.3%, and gold fell 1.5%, extending its longest daily losing streak on record.
Gold’s decline is notable for a safe-haven asset during a widening conflict. Analysts suggest forced selling from funds facing margin calls may be driving the drop, making bitcoin’s relative stability stand out—it is holding steady while gold continues to slide.
The five-day deadline set by Donald Trump for Iran expires Saturday, but Gulf involvement alters the outlook. A broader regional conflict would put energy infrastructure across the Gulf at risk and likely increase market volatility.
For now, bitcoin is holding above $70,000, even as other assets deteriorate, leaving traders watching to see whether its resilience continues or if the next headlines trigger further volatility.
