Bitcoin shakes amid Iran tensions and tariff worries

Bitcoin’s drop on Friday came amid a series of risk-avoidance signals. The U.S.-Iran conflict appears to have entered a new front after Iran-backed Houthi forces from Yemen attacked two Saudi vessels in the Red Sea, raising the potential for further supply disruptions to the oil market.

Crude oil prices jumped 15% this week, fueling fears of energy-driven inflation that could lead central banks worldwide to adopt a more hawkish stance.

Adding to the caution, the Donald Trump administration announced new trade tariffs against 60 trading partners, intensifying concerns that a global trade war is heating up again. The levy is scheduled to take effect on Friday.

While disruptions to oil supply and trade tariffs do not directly affect Bitcoin, their potential economic impact could curb interest in riskier and more speculative investments such as crypto.

Even so, Bitcoin has been supported by some improvements in this week’s capital flows, with spot exchange-traded funds (ETFs) recording their best weekly inflows since early May, according to data from SoSoValue.